China's Magnesium Ingot Output Fell in January amid Labour Shortages and Shrinking Profit

SHANGHAI, Feb 9 (SMM) - China's magnesium ingot output stood at 64,000 mt in January, down 2.8% MoM and down 22% YoY, according to SMM statistics. The YTD output in January totalled 64,000 mt, a YoY decrease of 22%.

Affected by migrant workers returning to their hometowns during the CNY holidays in January, the number of workers at magnesium factories has decreased. At the same time, magnesium prices were running at a low level. The shrinking profit has depressed the enthusiasm for production.

Workers have gradually returned to work currently. The magnesium prices have lacked upward momentum recently, and the prices of raw materials such as ferrosilicon and coal have dipped. It is estimated that the output of magnesium factories will remain low in February at about 65,000 mt. SMM will continue to keep an eye on the output changes in main producing areas.