China's domestic magnesium prices rose sharply in the week to Friday September 17 in response to notification of restricted operations at companies within the region that have both high energy consumption and high pollution output (Two Highs).
The notice was issued by the Yulin Municipal Development and Reform Commission on September 13. The city of Yulin in Shaanxi province is the magnesium production hub in China.
About 15 magnesium plants in the area were required to suspend operations and 30 magnesium plants were asked to cut output by 50%, sources said. The effective period will be from September to December this year, according to the notice.
The notice immediately triggered panic in the magnesium market, with prices pushed upward.
Fastmarkets' weekly price assessment for
magnesium, 99.9%, exw China, was 40,000-45,000 yuan ($6,207-6,983) per tonne on September 17, an increase of 9,000-13,500 yuan per tonne (36%) from 31,000-31,500 yuan per tonne a week earlier.
The price has now...