SHANGHAI, Aug 5 (SMM) - According to SMM research, domestic magnesium ingot output dropped to 69,000 mt in July 2022, down 15% from the previous month. The output totalled 570,000 mt from January to July, up 24.16% year-on-year.
Domestic magnesium plants have begun their summer overhaul, and the output in China fell somewhat. Some factories still plan to overhaul in August, and the overall output of magnesium ingots is expected to decline further in the future. The sales staff of a large magnesium factory said that due to the weak demand in the magnesium ingot market, the prices remained low, putting severe cost pressure on the factories. Meanwhile, the hot weather cooled down the production enthusiasm, and the equipment was waiting to be overhauled urgently, so the production cut and overhaul started in early July. The resumption of normal production depends on the future market trend.
Although the prices of magnesium are in a slow downward trend, the falling trend will be curbed somewhat by the further drop in output. In August, domestic magnesium ingot output is expected to maintain a downward trend, which is about 65,000 mt, amid the weak demand.