SHANGHAI, Feb 18 (SMM) – According to SMM survey, the operating rates of magnesium powder plants were suppressed under the impact of Beijing Winter Olympics. Some plants in Tianjin and Shanxi cut the production, and the overall output declined by 30%.
At the same time, some end users restocked large amounts of magnesium powder before the CNY for fear of the supply shortage post the Winter Olympics, hence the post CNY demand is weak, according to a magnesium power plant in Shanxi.
The production of magnesium powder in Henan has not been affected, while the downstream users were wait-and-see amid falling magnesium prices.
The overseas end users may have restocked magnesium powder in advance because the exports surged before the CNY. The market sees relatively strong bearish sentiments amid falling magnesium prices. China’s magnesium powder in February is expected to drop by 30% on the month. SMM will continue to track the overseas orders.
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