China's Magnesium Alloy Output in August Expected to be Flat from July

SHANGHAI, Aug 10 (SMM) - China's magnesium alloy output stood at 27,900 mt in July, up 12.94% MoM and down 8.91% YoY, according to SMM statistics. The output totalled 179,400 mt from January to July, a year-on-year decrease of 21.08%.

The average operating rate of magnesium alloy industry stood at 49.20% in July, up 12.94% MoM and down 13.19% YoY. As the prices of magnesium ingots trended lower in July, the market quotation of magnesium alloys was lowered accordingly. Therefore, the price acceptance of end-consumers increased, and some downstream enterprises of magnesium alloys chose to build the stock. The trading volume of magnesium alloys increased, and the operating rate of magnesium alloy plants also climbed. A salesperson from a large magnesium alloy plant revealed that recently the domestic and overseas orders for magnesium alloys were sufficient in that the low prices of magnesium had boots the downstream purchasing. Thus the magnesium alloy output in August is expected to be flat from July at 28,000 mt amid strong demand.