Asian Metal News
Shenmu Xinqing Magnesium smelter suspended operations on 25th May 2022, pending environmental assessment approval from relevant authorities. The company remained idle and ran maintenance in June and July during the waiting period. Low prices and slow sales of semi-coke have also been weighing on operations. The company is set to resume operations late next week and expects to produce 900 t of magnesium ingot in August.
Designed with 25 ktpy capacity, the company has produced 15.5 kt of magnesium in 2021 and 7.6 kt in the year to date.
Domestic magnesium prices have been stable at RMB 22,400~22,500/t ex-works by cash this week, as surplus supply eased led by further capacity cuts at local smelters and a strong will to prop prices. Market transactions were scarce and industry commentators forecast domestic magnesium prices to remain stable at low levels next week.