Stricter Environmental Protection Policies in Producing Areas Likely to Prompt Up Magnesium Prices

SHANGHAI, Jan 27 (SMM) - As the Chinese New Year is approaching, the downstream restocking activities have basically ended. Large-scale magnesium factories have stopped taking orders and suspended quotations. Some magnesium factories with high spot inventories chose to sell at lower prices, pulling down market prices further.

According to SMM research, China's magnesium ingot output is expected to be about 75,000 mt in January. During the CNY, there is currently no production suspension or reduction plans. It is expected that China's total magnesium ingot output will remain at a high level in February. In terms of prices, considering the downstream restocking demand post the CNY holiday and the strict environmental protection rectification in Fugu, the prices of magnesium are expected to rise to a high of 45,000 yuan/mt amid laggard increases triggered by the policy end.