Shenmu Lizhen resumes magnesium alloy production
2024-04-25 08:11:35 [Print]
BEIJING (Asian Metal) 25 Apr 24 - Shenmu Lizhen Technology New Material plans to resume magnesium alloy production in early April and predicts to produce about 850t of the metal in April, while no production last month.
"We started magnesium alloy production from November of 2023 and held the stable production state up till late January. And then, considering Spring Festival holiday and weakening demand at that time, we stopped magnesium alloy production since early February for equipment maintenance. As the demand from die casting industry picks up supported by rising price gap for magnesium and aluminum prices, we resumed magnesium alloy production from early April and expect to produce about 850t of the material this month," said a source from Lizhen, adding that the market demand revives slightly.
With an annual production capacity of 12,000t, the producer predicts to produce about 850t of magnesium alloy in April and produced zero ton in March. He holds no stock now, unchanged from late last month. He produced about 1,500t of the metal in Q4 of 2023 and predicts to produce about 1,800t up till late April in 2024.
The prevailing Chinese magnesium alloy prices stand at the present RMB20,500-21,000/t (USD2,847-2,916/t) EXW D/P, down by RMB100/t (USD14/t) from this Monday. Most buyers purchase the material as scheduled. In view of softening upstream ingot prices, insiders forecast that the mainstream Chinese magnesium alloy prices would stay soft in the coming days.
"We started magnesium alloy production from November of 2023 and held the stable production state up till late January. And then, considering Spring Festival holiday and weakening demand at that time, we stopped magnesium alloy production since early February for equipment maintenance. As the demand from die casting industry picks up supported by rising price gap for magnesium and aluminum prices, we resumed magnesium alloy production from early April and expect to produce about 850t of the material this month," said a source from Lizhen, adding that the market demand revives slightly.
With an annual production capacity of 12,000t, the producer predicts to produce about 850t of magnesium alloy in April and produced zero ton in March. He holds no stock now, unchanged from late last month. He produced about 1,500t of the metal in Q4 of 2023 and predicts to produce about 1,800t up till late April in 2024.
The prevailing Chinese magnesium alloy prices stand at the present RMB20,500-21,000/t (USD2,847-2,916/t) EXW D/P, down by RMB100/t (USD14/t) from this Monday. Most buyers purchase the material as scheduled. In view of softening upstream ingot prices, insiders forecast that the mainstream Chinese magnesium alloy prices would stay soft in the coming days.
