Asian Metal News
Jujinbang Magnesium suspended magnesium production in late October for overhaul. There is, as yet, no plan to resume production, given weak downstream demand and a bleak price outlook.
At present, local magnesium smelters are experiencing high production costs driven by slow sales of semi-coke and some semi-coal producers are already selling under production costs. Jujinbang has no plan to resume operations until the magnesium market improves.
Jujinbang, designed with 20 kt of magnesium capacity produced 1.1 kt of magnesium ingots in October and currently holds 200 t in stock. The company produced 12.8 kt of magnesium ingot in 2019 with 11.6 kt output in the year to date.
At present, mainstream magnesium prices stand between RMB 14,300~14,400/t ex-works on cash in Shaanxi, the same as late last week. Magnesium ingot transactions were limited last week with most market participants remaining watchful.