The magnesium industry suffered a lot in 2015. Under the dual pressure of oversupply and producers’ shortage of capital, the magnesium price kept falling during the whole year and once dropped to a record low in recent years. During this period, magnesium plants in Shanxi, Ningxia, Inner Mongolia, Xinjiang and other places continued to struggle with price inversion and cut their output slightly. With relatively high production costs, magnesium plants in Shaanxi had already suffered losses, but in view of huge capital pressure and serious consequence of production suspension, they maintained operation arduously. Oversupply problem was further aggravated as some magnesium plants even took the initiative to raise output with the aim of lowering the production cost of single tank.
In 2015, the demand from overseas consumers went down on the whole and profit margins of magnesium products were severely squeezed. End users established direct business relationship with domestic producers successively, making it hard for traders to maintain normal operation. Meanwhile, magnesium export market was under a lot of strain because of the fluctuation in ocean freight and sharp decline in exchange rate.
How will magnesium product market move forward in 2016? Which direction will the price head for? Make money or a loss? As one of major magnesium product producers, China accounts for 90% of global supply. After experiencing various setbacks, such as continuous decline in magnesium prices, buyers at home and abroad sticking to hand-to-mouth purchases for immediate uses and continuing sparse transactions, can Chinese magnesium market get through the “darkness period "? Let’s gather together, interpret the changes in magnesium metal market, and look back on the development of the industry.
Thanks to your consistent support and trust, Asian metal will hold the “5th World Magnesium Forum” in Xiamen from April 13 to April 15, 2016. Magnesium metal producers, traders, consumers and other related people from all over the world will come here, jointly explore the development direction of magnesium metal industry, and look for ways to break the development bottleneck.
Asian Metal invites all of you to come to Xiamen in April, 2016 to attend this forum.
