Asian Metal News
IM Yunsheng magnesium smelter suspended operations on 25th January 2021, reducing its January output by 200 t on-month accordingly.
According to an inside source, the company halted operations last week amid low prices and plans to restart after February. The company will resume normal operations in March with monthly output of 900 t. The company currently holds 31 t of magnesium ingot in stock and is reluctant to sell under RMB14,200/t.
Mainstream magnesium prices fell by RMB50/t to RMB14,100~14,400/t last Wednesday. In view of most buyers completing replenishment two weeks before the Chinese New Year holiday, transactions have been slow. Some magnesium smelters have had to compromise with a price reduction of RMB100/t to facilitate sales and recoup funds. Market commentators forecast domestic magnesium prices are likely to drop further by RMB100/t over the next few days, driven by a weak market.