China Nonferrous Metals News
Domestic magnesium prices averaged RMB14,679/t in February 2020, up 31.28% y-o-y despite few transactions being concluded during the period. Domestic primary magnesium output declined significantly y-o-y due to the spread of COVID-19 in February. Meanwhile, traders and some downstream buyers made small replenishments during the month on concerns of supply shortages. In combination, the two factors drove up domestic magnesium prices during February. In exports, magnesium prices climbed by 16.6% y-o-y to USD2,186/t FOB China in February.
With raw material supply improving after miners restarted operations in March, domestic magnesium smelters will resume production with steady output during the month. Domestic magnesium prices are expected to hover around RMB14,000~14,200/t, with export prices standing at USD2,090~2,110/t FOB China for March 2020.
