Domestic Magnesium Ingot Output Continues to Slide in November

SHANGHAI, Dec 8 (SMM) - According to SMM, China's magnesium ingot output stood at 75,000 mt in November, down 5% MoM and up 14% YoY. The output totalled 881,000 mt in January-November, up 27% from the comparable months last year. The trades in the magnesium market were thin as downstream demand in November failed the expectation. As such, magnesium prices showed a downward trend. According to SMM statistics, the prices of Mg90% magnesium ingots in Fugu county, Shaanxi province, generally fell by more than 2,200 yuan/mt in November alone. The exceedingly low profits dampened the enthusiasm for production among magnesium factories, which led the domestic magnesium ingot output to post a second straight month of decrease. It is learned from some people in charge of the magnesium factories that the constant falling magnesium prices already caused market transaction prices to drop below the costs of some producers, and most magnesium factories generally operated under financial pressure. What was worse, employees of several plants were under lockdowns for testing positive for COVID-19. As a result, the operating rates of magnesium plants were dragged down. It is expected that the output of magnesium ingots will remain low as the outlook for pandemic control is pessimistic. To be specific, the domestic magnesium ingot output in December is predicted to be 72,000 mt.