Magnesia producers ramp-up output after Liaoning relaxes public health emergency status
Published: Wednesday, 26 February 2020
Magnesia producers in the production hub of Liaoning province in China, are beginning to ramp up operations after the local government relaxed its public health emergency status to 'level three' on February 22.
Liaoning's public health emergency status had been set at
'level one' (the highest) on January 25, based on the situation
for controlling the coronavirus (2019-nCoV) outbreak.
Following central government instructions, Liaoning province
delayed the reopening of workplaces until February 10 to try
and stop the spread of the virus, and since then magnesia
producers have gradually returned to work along with other
No materials shortages have been seen in
China’s magnesia market, so far, and some
producers have lowered their offer prices on the spot market to
boost sales and cashflow and to maintain normal production,
"Magnesia supply remains sufficient due to long-term
overcapacity," a producer source told Fastmarkets. "Downstream
demand is recovering gradually, but has not picked up greatly
[as yet], so magnesia prices are still under pressure."
Fastmarkets' price assessment for magnesia, fused, 96% MgO, lump, fob China,
were at $380-480 per tonne on February 25, down from $400-500
per tonne a week earlier.
Fastmarkets' price assessment
for magnesia, fused, 97% MgO, Ca:Si 2:1, lump,
was at $500-600 per tonne on Tuesday this week, down $520-620
per tonne from the previous week.
"Fused magnesia prices became softer recently and some
producers lowered their prices [in response to] current
sluggish demand, but we haven’t started purchasing
and are still consuming our current stocks," a buyer said.