China Nonferrous Metals News
As of 27th March, primary magnesium ingot (99.9% grade) was being quoted between RMB 13,700/t tax inclusive by cash in Fugu Shaanxi, and concluded between RMB13,650~13,700/t. Domestic magnesium prices plummeted by RMB200~300/t from the previous Friday, and closed at the lowest level since February 2017.
Market participants are bearish about the short-term outlook due to suspensions by automobile producers, die casters and aluminium smelters overseas as well as interrupted transportation as a result of COVID-19. Domestic demand is also weak, and domestic prices are likely to trend down further. Most domestic magnesium smelters are facing difficult times, with significant losses in making semi-coke and current prices close to break evens. In the event that prices continue to fall, some smelters will consider cutting operations or advancing maintenance plans.
