Regional Magnesium Ingot Transactions Blocked by On-going Pandemic in Shanghai

SHANGHAI, Mar 29 (SMM) - The pandemic continues to deteriorate in Shanghai. According to the Shanghai Municipal Health Commission: from 0 pm to 24 am March 28, 2022, 96 confirmed COVID cases and 4381 asymptomatic infections were newly discovered in Shanghai, of which 21 confirmed cases were related to previous asymptomatic infections, 7 confirmed cases and 3824 asymptomatic infections were found during quarantine control. The rest were found during the screening of the relevant risk groups. There were 11 new confirmed imported cases and one asymptomatic case, all of which were detected during closed-loop control.

"Based on the current scope of lockdown, the local market is basically in a standstill. It is very difficult to find a ca recently, and starting from today, almost no drivers are willing to take orders. As the lockdown is extended to the 5th of next month, we have started a holiday here." Said a magnesium trader in Shanghai.

The businesses of magnesium traders in Shanghai have been hampered recently. The shipments from and to local warehouse are restricted, and some traders choose to source from warehouses outside Shanghai for delivery, based on SMM research.

According to a trader, due to the escalating pandemic prevention and control measures, local warehouses are unable to ship or take in any goods. Customers need to go to foreign warehouses to pick up magnesium ingots. Meanwhile, the downstream demand is weak, hence orders from surrounding areas are less than expected.

At present, the warehouses adjacent to Shanghai can temporarily address the problem concerning traders' delivery of cargoes, but the current wave of pandemic in Shanghai has not yet reached its pivot. The impact on land transport as well as downstream demand continues. SMM will continue to watch the subsequent pandemic situation in Shanghai.

[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]