China Nonferrous Metals News
Domestic magnesium prices climbed by 12.68% on-year to average RMB 17,031/t in April, with magnesium prices averaging RMB 17,091/t during the first four months of 2019 up 13.24% on-year. Domestic magnesium transactions were flat in April, but tightening coal supply in Shaanxi and IM have buoyed coal prices and consequently propped magnesium prices. In addition, limited inventory at smelters has also help stabilize magnesium prices. As of end-April, mainstream quotations were RMB 17,000~17,100/t in Shanxi, RMB 16,800~16,900/t in Ningxia and RMB 16,800~16,900/t in Shaanxi.
Safety operation checks on coalmines in Shaanxi and IM, in conjunction with recent rainy weather has curbed most operations at local open-pit coalmines, and other coalmines have also cut operation. Tightening coal supply has raised production costs of magnesium – most smelters have low levels of inventory, propping magnesium prices. Magnesium demand remained lackluster in May with few transactions – meaning a surge in price is unlikely. In general, China’s magnesium prices are expected hover between RMB 16,900/t~17,500/t in the domestic market and FOB prices at USD 2,600~2,700/t for exports.
CNIA: China produced 198.9 kt of magnesium during the first three months of 2019, up 12.47% on-year. Of this figure, output from Shaanxi was 118.3 kt, Shanxi 30 kt, up 12.16 and up 40.8% on-year respectively, while output in Ningxia dropped by 26.12% on-year to 10.2 kt.
