Asian Metal News
Fugu Jinwangtong Magnesium smelter is set to suspend magnesium smelting and run maintenance in late March 2023. As yet, the date of resumption is undecided.
According to an internal source, the company has been mired in loss for several months and in view of continuing weak demand, the company will suspend operations in late March. Designed with 40 ktpy of magnesium capacity, March 2023 production is estimated at 2.7 kt, down by 1.6 kt y-o-y. Fugu Jinwangtong produced 41 kt of magnesium in 2022, expects 7.5 kt of production in Q1 2023 and currently holds 3.1 kt in stock.
Fugu Wanxi Magnesium, designed with 20 ktpy capacity, is set to suspend operations and run maintenance from 27th March and resume operations in late April. The company produced 1.55 kt of magnesium in March, holding stable m-o-m. It produced 18.5 kt of magnesium in 2022, expects 4.6 kt of production in Q1 2023 and currently holds 2.8 kt in stock.
With mainstream magnesium prices sitting at RMB 19,900~20,200/t ex-works, by cash, many magnesium smelters in Fugu Shaanxi face severe losses and have been forced to suspend or cut operations this week. In anticipation of shrinking supply next week, industrial commentators forecast prices to rebound slightly.