China December Magnesium ingot Output and Forecast for January

SMM data showed that China's magnesium ingot production in December was 60,613 mt, up 9.4% MoM but down 8.1% YoY, bringing total output from January to December 2023 up to about 709,000 mt, down 25% YoY.

The magnesium plants that were shut for semi-coke's rectification in the main production area resumed production in December. In addition, several large plants with larger capacity resumed production. In contrast, several large plants didn’t resume full production yet. The reason behind falling production of magnesium ingot plants was that profit erosions amid falling price to nearly break-even level tipped some magnesium plants into operating rate slide. Generally speaking, overall magnesium ingot output increased in December. Currently, magnesium price dipped to 20,000 yuan/mt. In addition, overseas demand not picked up yet. If the price slip remains, magnesium plants may reduce production. SMM predicted that magnesium ingot production will be reduced to 57,000 mt in January.