China's domestic magnesium price moved up for a sixth consecutive week and surged to its highest since September 2019 on a stockpiling initiative in Yulin, Shaanxi province as well as rising input costs for magnesium plants, market sources said.
Fastmarkets' weekly price assessment for magnesium 99.9%, exw China was 15,000-15,500 yuan ($2,291-2,367) per tonne on Friday December 11, an increase of 1,400 yuan per tonne or 10.1% from 13,500-14,200 yuan per tonne a week earlier.
Magnesium producers unanimously raised prices in the past week, which continue to move up, sources told Fastmarkets.
One important reason for the uptrend is Shaanxi Yulin Magnesium's stockpiling initiative, a new company founded in October 2020 in China's magnesium production hub of Fugu in Yulin city.
Sources told Fastmarkets that around 27 magnesium plants in the Yulin area participated in this initiative and pledged materials to the new company.
"I heard that each participating plant would pledge about 20% of its monthly output to Yulin Magnesium. The total is estimated...