Asian Metal News
Xinjiang Tengxiang Magnesium smelter cut operations by 45% with daily output of 25 t in late July, a situation which is expected to last until end-August.
According to an inside source, the company has been buckling under slowing sales and low semi-coke prices as well as soaring coal prices. As a result, it has decided to cut operations and run maintenance for a month from late July to late August 2022.
Designed with 20 ktpy magnesium capacity, the company produced 14.5 kt of magnesium in 2021 and 9.1 kt in the year to date. It produced 1.3 kt of magnesium in July with August production expected at 750 t.
Mainstream magnesium prices are at RMB 22,500~23,000/t ex-works by cash at present, holding stable at the low-end from last Friday led by sluggish demand. Industry commentators project prices to drop further by RMB 200/t next week given weaker demand and continued fierce price competition among sellers on the market.