Asian Metal News
22nd December: Shanxi Bada Magnesium reduced its magnesium operations by 80% to 10 tonnes per day amid more stringent environmental requirements. The situation is expected to continue through to early January 2021.
According to an internal source, the company cut operations following environmental requirements of local authorities in combination with tightening coal supply. ‘We may cut all operations if the environmental requirements become more stringent in January 2021. Most magnesium smelters have cut operations significantly due to rigid environmental measures’, the source said.
Designed with 30 ktpy capacity, the company produced 2.4 kt in November 2020 and December output is estimated to plummet to 700 tonnes. The company produced 28.5 kt of magnesium in 2019 and 22 kt in the year to date.
Domestic magnesium prices lifted by RMB200/t w-o-w to RMB15,650~15,950/t. Industry commentators forecast domestic magnesium prices will gain further by RMB100/t next week, led by increasing environmental pressures and tightening coal supply.
