China Magnesium powder output in October and forecast for November

SMM data showed that China's magnesium powder production in October was 4,600 mt, down 8.4% MoM, bringing total output up to 53,000 mt. In October, there were ongoing production cuts at some magnesium plants amid safety supervisions in north China, thereby leading to low operating rate of magnesium powder plants.

The person in charge of a large magnesium powder enterprise said that poor profits of steel mills amid domestic economic downturn, as well as falling magnesium ingot prices, made downstream magnesium powder buyers prudent. There was a slight decline in daily average pig iron output, and slower production cuts of steel mills were reported. Therefore, short-term magnesium powder demand will remain stable. In addition, magnesium ingot prices may offer a small boost to magnesium powder market. It is expected that the China’s magnesium powder output in November will inch up to about 5,000 mt.