SHANGHAI, Aug 23 (SMM) - According to customs data, China magnesium ingot exports stood at 24,936 mt in July, down 1.38% MoM and up 11.97% YoY. The exports totalled 166,587 mt from January to July, an increase of 10.59% YoY.
In terms of destinations in July 2022, the export volume to Netherlands stood at 6,083 mt, accounting for 24% of the total exports; Canada 2,504 mt, accounting for 10%; Japan 2,195 mt, accounting for 9%; India 1,948 mt, accounting for 8%; and UAE 1,256 mt, accounting for 5%.
As Europe is the main destination that accommodates 30-40% of China's magnesium ingot exports, there have been concerns about whether the high energy price will affect the production of local factories. European gas prices surged again on Monday as Russia's recent move to shut down the Nord Stream-1 gas pipeline again fuelled fears of long-term supply disruptions.
European benchmark - Dutch front-month natural gas futures - rose more than 16% to 285.005 euros per megawatt-hour by the time of this writing. Meanwhile, electricity prices in Germany also rose 13% for the coming year to a record high of €630/MWh. At present, overseas companies are still on summer vacation, and countries in Europe are also actively building natural gas reserves for the coming autumn and winter. If the follow-up overseas electricity prices continue to rise, it is possible that local factories will reduce the production intensively. SMM will continue to pay attention to the changes in European natural gas prices.
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