SMM data showed that China's magnesium ingot production in November was 55,388 mt, up 0.7% MoM but down 26% YoY, bringing total output in the first eleven months of 2023 up to about 648,000 mt, down 26% YoY.
In November, production reduction situation of magnesium plants in the main production areas improved, with restart of a few magnesium plants. Several large plants still carried out maintenance. At the same time, there were also plants that reduced production this month. The reasons for the reduction were: 1 Restart of some magnesium ingot plants in Fugu was hindered in the last week of November. 2 Magnesium ingot prices dropped to nearly the cost line, further squeezing profits of magnesium ingot plants, thereby blunting market confidence. Therefore, some plants lowered operating rate. Magnesium ingot output may hike to 56,000 mt in December with restart of some plants.
