Asian Metal News
Shanxi Wulong magnesium smelter cut its daily production from 90 t to 65 t in early July and the company expects 1,950 t of production in July, down by 800 t from June.
According to an internal source, the company has curbed operations amid workers shortages at workshops, a consequence of severe summer heat and continuing low prices.
Designed with 35 ktpy capacity, the company produced 32.5 kt of magnesium in 2022 and has made 14.5 kt in the year to date. It currently holds no stock.
Shenmu Xinqing magnesium smelter in Shaanxi has also cut operations amid summer heat. The company expects to produce 1,500 t of magnesium in July, down by 700 t from June.
Mainstream magnesium prices have rebounded to RMB 20,700~21,000/t at present, up by RMB 150/t from Monday, led by active buyers. With high temperatures at magnesium workshops increasing operational difficulties, smelters are holding firm on prices and lower operational rates are contracting market supply during summer. Industry commentators forecast domestic magnesium prices to pick up slightly next week.
