Asian Metal News
8th August: Fugu Yide Magnesium suspended smelting last Friday, and is set to resume operation on 25th August 2022.
According to an inside source, “Stagnating sales, continued low prices of semi-coke together with the harsh summer heat interrupting operations, has resulted in the domestic magnesium market remaining flat at low-price levels. So we have decided to halt operations and run maintenance for approximately three weeks from 5th August.”
Designed with 20 ktpy capacity, Fugu Yide produced 19.5 kt of magnesium in 2021 and 12 kt in the year to date. It produced 1.6 kt of magnesium in July, with August production is estimated at 500 t. The company currently holds 600 t of magnesium in stock.
Domestic magnesium prices are sitting between RMB 22,500~22,600/t ex-works by cash, down by RMB 300/t from last Friday. Industry commentators forecast domestic magnesium prices to fall further by RMB 200/t this week given continued weak demand and vendors’ intentions to make sales.