Shanghai Nonferrous Metals News
China produced 75 kt of magnesium ingot in November 2022, down by 5% m-o-m and up by 14% y-o-y; China’s total magnesium production reached 881 kt, up by 27% y-o-y.
Domestic magnesium prices fell in November amid weaker than expected demand. Mainstream magnesium prices in Fugu Shaanxi dropped to less than RMB 22,000/t in November, suppressing margins of local smelters and curbing operations. Consequently, China’s magnesium production fell for a second successive month in November. Continued falling magnesium prices have fallen below the breakeven for several smelters, which along with increasing risks from rising COVID cases reducing attendance of workers, has seen industry commentators forecast domestic magnesium production to drop to 72 kt in December 2022.
