Fugu Jinwantong plans to stop magnesium ingot production
2023-03-27 07:41:10 [Print]
BEIJING (Asian Metal) 27 Mar 23 - Fugu Jinwantong Magnesium Co. intends to stop the production for magnesium ingot since late March and the resumption plan depends on the market. He predicts to produce about 2,700t of magnesium ingot in March, while about 2,400t in February.
"Considering weakening demand for magnesium ingot market since the second half of 2022, the stocks among suppliers kept rising and prices showed the downward trend on the whole. What's worse, the situation became poor after this Festival Holiday and we suffered heavy pressure on price inversion, so we had no choice but to stop the production for magnesium ingot since late this month," said a source from Jinwantong, anticipating the market couldn't pick up in a short time given weak demand. Nevertheless, the output reduction among suppliers would restrain a continuous downward price trend. He predicts to produce about 2,700t of the material in March and produced about 2,400t in February.
With an annual production capacity of 40,000t, the producer predicts to produce about 2,700t of magnesium ingot in March, while about 2,400t in February. He holds about 3,100t of stocks, unchanged from late last month. He produced about 41,000t of the metal in 2022 and predicts to produce about 7,500t of the metal in Q1 of 2023.
The prevailing Chinese magnesium ingot prices stood weakly stable at RMB19,900-20,200/t (USD2,884-2,927/t) EXW D/P, almost identical in the recent three days but down by RMB200/t (USD28/t) from late last week. Taking price inversion among suppliers and continuous slack movements into consideration, more plants have intention to decrease their output to relieve the pressure on selling. Insiders are of the opinion that the mainstream Chinese magnesium ingot prices would stay weakly stable in the coming days.
"Considering weakening demand for magnesium ingot market since the second half of 2022, the stocks among suppliers kept rising and prices showed the downward trend on the whole. What's worse, the situation became poor after this Festival Holiday and we suffered heavy pressure on price inversion, so we had no choice but to stop the production for magnesium ingot since late this month," said a source from Jinwantong, anticipating the market couldn't pick up in a short time given weak demand. Nevertheless, the output reduction among suppliers would restrain a continuous downward price trend. He predicts to produce about 2,700t of the material in March and produced about 2,400t in February.
With an annual production capacity of 40,000t, the producer predicts to produce about 2,700t of magnesium ingot in March, while about 2,400t in February. He holds about 3,100t of stocks, unchanged from late last month. He produced about 41,000t of the metal in 2022 and predicts to produce about 7,500t of the metal in Q1 of 2023.
The prevailing Chinese magnesium ingot prices stood weakly stable at RMB19,900-20,200/t (USD2,884-2,927/t) EXW D/P, almost identical in the recent three days but down by RMB200/t (USD28/t) from late last week. Taking price inversion among suppliers and continuous slack movements into consideration, more plants have intention to decrease their output to relieve the pressure on selling. Insiders are of the opinion that the mainstream Chinese magnesium ingot prices would stay weakly stable in the coming days.
