Asian Metal News
Fugu Jinchuan Magnesium curbed operations by 50% on 25th July with daily production at 30 t and started maintenance, a situation which is expected to last until mid-August. The company anticipates 900 t of magnesium production in August, down by 800 t from July.
According to an inside source, the company curbed operations on 25th July amid weak prices and slowing sales of semi-coke, together with the harsh summer heat increasing operational difficulties. Designed with 25 ktpy magnesium capacity, the company produced 18.5 kt of magnesium in 2021, 12 kt in the year to date and currently holds no magnesium in stock.
Shrinking supply led by further production cuts at Fugu smelters, together with increased interest from buyers has seen magnesium transaction prices pick up this week, with mainstream transaction prices at RMB 22,400~22,500/t ex-works by cash in Shaanxi. Prices are expected to be stable over the short-term.
