Fugu Xintian Magnesium to stop magnesium ingot production
2023-03-20 07:42:39 [Print]
BEIJING (Asian Metal) 20 Mar 23 - Fugu Xintian Magnesium Alloy intends to stop the production of magnesium ingot since 26 March and his resumption plan didn't make sure. They predict to produce about 2,900t of the metal in March, an increase of 600t MoM.
"Actually, we began to suffer price inversion on semi coke and magnesium ingot since December of 2022 and plan to stop the production of magnesium ingot since 26 March after almost four months' loss," said a source from Xintian, adding that they hold pessimistic attitudes towards the market trend under the gloomy economy and continuous poor market expectations. He added that the stable production would bring heavier pressure on supply and the output reduction or suspension would be the only way to relieve the oversupply state in a long term.
With an annual production capacity of 54,000t, the producer predicts to produce about 2,900t of the metal in March and produced about 2,300t in February. He holds about 6,000t of stocks now, up by 1,000t from last month. They produced about 44,976t of the metal in 2022 and predict to produce about 7,600t of the material in Q1 of 2023.
Given weakening demand from buyers but strong intentions to decrease stocks from suppliers, the mainstream Chinese magnesium ingot prices hovered at the range of RMB20,100-20,400/t (USD2,913-2,956/t) EXW D/P, down by RMB300/t (USD43/t) from early last week. Considering continuous cautious purchase from buyers, insiders forecast Chinese magnesium ingot market movements would stay slack and the mainstream prices would stay soft in the forthcoming days.
"Actually, we began to suffer price inversion on semi coke and magnesium ingot since December of 2022 and plan to stop the production of magnesium ingot since 26 March after almost four months' loss," said a source from Xintian, adding that they hold pessimistic attitudes towards the market trend under the gloomy economy and continuous poor market expectations. He added that the stable production would bring heavier pressure on supply and the output reduction or suspension would be the only way to relieve the oversupply state in a long term.
With an annual production capacity of 54,000t, the producer predicts to produce about 2,900t of the metal in March and produced about 2,300t in February. He holds about 6,000t of stocks now, up by 1,000t from last month. They produced about 44,976t of the metal in 2022 and predict to produce about 7,600t of the material in Q1 of 2023.
Given weakening demand from buyers but strong intentions to decrease stocks from suppliers, the mainstream Chinese magnesium ingot prices hovered at the range of RMB20,100-20,400/t (USD2,913-2,956/t) EXW D/P, down by RMB300/t (USD43/t) from early last week. Considering continuous cautious purchase from buyers, insiders forecast Chinese magnesium ingot market movements would stay slack and the mainstream prices would stay soft in the forthcoming days.
