China's domestic magnesium price increased sharply after authorities in Zhongwei - a key ferro-alloy production hub in Ningxia Hui Autonomous Region - issued a production cut notice due to high energy-consuming enterprises on Thursday June 3.
Fastmarkets' weekly price assessment for magnesium 99.9%, exw China was 18,300-19,000 yuan ($2,861.07-2,970.51) per tonne on Friday June 4, an increase of 300-800 yuan per tonne or 3% from 18,000-18,200 yuan per tonne a week earlier.
The domestic magnesium price surged from Thursday June 3 on market expectations of a higher ferro-silicon price given the output cut, sources said. Ferro-silicon is the reducing agent used in magnesium production and the magnesium price had, in fact, weakened earlier in...