Asian Metal News
Shanxi New Energy Magnesium suspended operations on 5th November and is set to resume operations in January 2024- with daily production increasing to 200 kt. As of today, the company has produced 100 t of magnesium in November, down by 600 t m-o-m.
According to a company spokesman, Shanxi New Energy suspended operations under the pressure of surging energy costs (coal gas) as well as depressed magnesium prices. The company has been grappling with the issues of production cost over price for quite a while.
Designed with 15 ktpy magnesium capacity, the company produced 8.5 kt of magnesium in 2022 and 6.2 kt in the year to date.
Mainstream magnesium prices slid by RMB 300/t from early November to RMB 20,900~21,200/t last week. In view of depressed demand, industry commentators forecast prices to trend down further next week.