China's Shanxi Wenxi Hongfu Magnesium is to raise its magnesium ingot
output to 30,000 mt in 2007, up from 16,000 mt produced a year ago, a company
official told Platts on Tuesday.
"We have our own mines and this helps secure enough raw material for
production. Our raw material output has been on the rise and we will produce
more ingots this year," the official said. "We have plans to further increase
our ingot capacity to around 100,000 mt/year in about two years."
He added that the company supplies about 50% of its total output
overseas. "We are currently exporting about 1,300 mt/month of magnesium ingots
and 800-900 mt/month of magnesium alloy," he said.
The company currently has a magnesium alloy capacity of 20,000 mt/year.
"We will produce about 10,000 mt of magnesium alloys this year," he added.
"Our company has established a good sales network with both overseas and
local consumers and we are now selling all our material on a spot basis," he
said, adding that the company is now offering spot magnesium ingots at around
$2,550/mt FOB China, while domestic prices were now quoted at slightly above
Yuan 19,000 ($2,494)/mt ex-plant.