Asian Metal News
IM Yunsheng Magnesium Technology Co. Ltd. has decided to cut its magnesium production by 50% to approximately 20 t per day from 14th January to 12 February 2020. The move comes due to reduced coal supply prior to the Chinese New Year holiday combined with heavy snow curbing coal transport.
IM Yunsheng, designed with 20 ktpy magnesium smelting capacity, produced 1.2 kt of magnesium in December, but its January output is expected to drop to 500 t. The company produced 12.8 kt of magnesium in 2018 and its 2019 output is holding steady. It currently holds 62 t magnesium ingot in stock.
Mainstream magnesium prices are stable at RMB13,900~14,200/t ex-works by cash at present, the same level as last week. Downstream buyers are actively restocking prior to the holiday but without much spot product in stock, some smelters have begun to pre-sell their product at RMB50/t lower than current spot market prices.