The magnesium branch of China Nonferrous Metals Industry Association (CNIA) published a proposal on August 27 calling for the healthy development of the magnesium industry. This came amid surging metal prices.
Fastmarkets' weekly price assessment for magnesium, 99.9%, exw China, was 25,000-26,000 yuan ($3,862-4,017) per tonne on Friday August 27, an increase of 2,800-3,600 yuan per tonne or 14.3% from 22,200-22,400 yuan per tonne a week earlier.
Sources told Fastmarkets that more expensive input costs, such as for coal and ferro-silicon, add to magnesium producers' production costs. Thus producers are very firm about raising prices.
"The coal price keeps rising in China due to a supply shortage. Demand for coal is robust in the hot summer, the peak power usage time," a trader told Fastmarkets.
The increasing coal prices have pushed up downstream ferro-silicon prices, sources said.
Magnesium producers in Yulin city of...