Asian Metal News
Fugu Fangzheng Magnesium smelter in Shaanxi curbed operations by 30% in late July amid weaker demand, falling sales and low prices of semi-coke. The company has no plan to resume normal operations until late August.
Designed with 25 ktpy capacity, Fugu Fangzheng produced 21 kt of magnesium in 2021 and 11.5 kt in the year to date. The company produced 1.8 kt of magnesium in July with its August production estimated at 1.2 kt, with daily output of 40 t.
IM Huihao suspended operations for maintenance on 23rd July and plans to resume in late September. The company produced 500 t of magnesium in July with no output in August. According to a company spokesman, “We are under the pressure of meeting breakeven amid declining demand and falling prices”.
Designed with 10 ktpy capacity, IM Huihao produced 6.7 kt of magnesium in 2021 and 3.6 kt in the year to date.
Mainstream magnesium prices dropped by RMB 200/t from last Friday to RMB 22,600~23,000/t ex-work by cash in China led by sluggish demand. Industry commentators project prices to continue stable at low levels next week considering lackluster demand going forward.
