Asian Metal News
29th July: Fugu Wenzhongfeng Magnesium curbed operations by 40% and started maintenance in early July, a situation which is expected to last until mid-August. The company anticipates 500 t of magnesium production in July, down by 300 t from June.
According to an inside source, the company has been buckling under low magnesium prices and sluggish demand, while, low prices and slow sales of semi-coke have worsened the liquidity of the company. Designed with 12 ktpy magnesium capacity, the company produced 5.5 kt of magnesium in 2021 and 5.2 kt in the year to date.
Fugu Jinhuan Hongtai Magnesium curbed operations by 50% and started maintenance in mid-July, planning to resume normal operation in mid-August. The company expects 750 t of magnesium production in July, falling by 50% m-o-m.
According to an inside source, the company curbed operations in mid-July amid weak prices and slowing sales of semi-coke together with harsh summer heat increasing operational difficulties. Designed with 20 ktpy magnesium capacity, the company has produced 17.5 kt of magnesium in 2021, 9.8 kt in the year to date and currently holds 4 kt of magnesium in stock.
Mainstream magnesium prices dropped by RMB 200/t from last Friday to RMB 22,800~29,000/t ex-work by cash in Shaanxi led by sluggish demand and weaker coal and FeSi prices. The market remains flat with few transactions this week, industry commentators project prices will continue stable at low levels next week.