Asian Metal News
Yunlin Wanyuan Magnesium smelter expects its March production to drop by 300 t m-o-m to 1.5 kt, due to dolomite supply shortages during the month.
According to an internal source, dolomite prices soared by RMB 80/t m-o-m to RMB 230/t in March, which together with subpar dolomite quality, has seen the company’s daily production drop by 9 t. The company is looking to increase its production to 1.8 kt in April after some technology upgrades.
Designed with 22 ktpy capacity, the company is running 920 retorts at present. It produced 17.8 kt of magnesium ingot in 2021 and 4.7 kt in the year to date.
Mainstream magnesium prices currently stand at RMB 40,000~41,000/t, continuing steady on Tuesday but up by RMB 1,000/t from last Thursday. Boosted by strong demand, market transactions are active. Smelters are keen to prop prices and, in view of possible production cuts under the pressure of environmental pressures, industry insiders project domestic magnesium prices to keep stable at high levels next week.