SMM Data: China’s Magnesium Ingots Output In August And Forecast For September

SHANGHAI, Sep 12 (SMM) – According to SMM data, the production of magnesium ingots in China reached 54,000 mt in August 2023, showing a 6.6% increase MoM, but a 26.4% YoY. The cumulative production for the year reached 485,000 mt, with a cumulative decrease of 25% YoY.

In August, the main production areas of magnesium plants were affected by the rectification of their coal-based equipment, resulting in sustained low-level production in the region. Currently, there are no relevant documents on resumption of production, and there is a strong sentiment of limited sales on the supply side. Due to the upward trend in magnesium prices, other regions have significantly increased production, resulting in a 6.6% increase MoM in magnesium ingot production in August. Considering that the resumption time in the main production areas is still uncertain and the market is entering the traditional peak season of "Golden September and Silver October," market expectations are generally positive. The supply side maintains a high level of production enthusiasm. It is expected that the domestic production of magnesium ingots will continue to grow in September, reaching approximately 56,000 mt.