Asian Metal News
Yulin Coal Technology restarted primary magnesium production on 24th June 2020 with daily output of 20 t. The company suspended operations on 25th April to undertake maintenance amid a weak market.
According to an internal source, with the FeSi price currently standing at RMB5,750/t, the company is buckling under low magnesium sales prices at RMB13,000/t, resulting in continued losses.
Designed with magnesium capacity of 10 ktpy, Yulin Coal Technology produced 100 t of primary magnesium in June and its July output is expected to rise to 600 t. It produced 5.5 kt of magnesium in 2019 and its 2020 output in the year to date is 2 kt.
Mainstream primary magnesium is being quoted at RMB13,050~13,350/t in the domestic market, falling by RMB150/t from last week amid continued depressed demand from both domestic and global markets. Market transactions are limited and industry participants forecast magnesium prices to remain weak at low levels next week.