Asian Metal News
2nd August: Fugu Yihe Magnesium suspended magnesium production and began regular maintenance on 1st August, the situation is expected to last to late October 2022.
According to an inside source, “Stagnating sales, continued low prices of semi-coke together with 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 two months.”
Designed with 25 ktpy capacity, Fugu Yihe has produced 22.5 kt of magnesium in 2021 and 12.7 kt in the year to date. It produced 2 kt of magnesium in July, with August production estimated at 1 kt. The company currently holds 500 t of magnesium in stock.
Domestic magnesium prices are sitting between RMB 22,700~23,200/t ex-work by cash, down by RMB 100/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.