Shanghai Nonferrous Metals News
Several magnesium smelters in Shenmu and Fugu Shaanxi have decided to run maintenance in late June amid pressures from environmental checks and difficulties with sourcing coal. In addition, given shortening dolomite supply due to mining rectification work at Wutai Shanxi, domestic magnesium smelters intend to shore prices up over the short term.
Dingtai Magnesium in Shenmu Shaanxi cut its daily magnesium production by 40% to 30 t on 10th June, a situation which will last through to early July. The smelter produced 1.06 kt of magnesium in June, down by 29% from May. Designed with 20 ktpy capacity, the company produced 1.5 kt of magnesium in May and 1.06 kt in June. It currently holds no stock.
Taida Coal Chemicals in Fugu is set to suspend magnesium production from 5 July to 26 July amid shortening supply of dolomite. The company intends to resume normal operation by end-July with daily production of 90 t. Designed with 35 ktpy capacity, the smelter produced 2.8 kt of magnesium in May and June respectively, and currently holds 200 t in stock.
Mainstream magnesium prices stand at RMB19,800~20,000/t ex-works, holding stable w-o-w. Prices are expected to rise slightly next week in the wake of shortening supply.
