Following bearish Market Sentiments, China's Magnesium Powder Output to Decline in July
- 06-Jul-2022 4:42 PM
- Journalist: Bob Duffler
Only a few days after China loosened some Covid rules, viral instances in various parts of the country have alerted additional regions, with majority of the new cases occurring in the area near Shanghai. After weeks of restrictions that halted many inbound and outbound movements across the country, Beijing and Shanghai resumed regular business activities in June. Shanghai, a major city in southeast China, was severely damaged and kept under lockdown during April and May.
However, it was noted that the daily Covid case count in Beijing and Shanghai, two important commercial centers, has decreased to single digits or zero over the past several days. If markets ignore the resurgence of COVID instances and underestimate the expense of ongoing COVID containment measures, they risk becoming a little too comfortable; a market expert said in a paper released Monday.
The country's end-user industries, such as feed, food and beverage, pharmaceutical, and others, have been adversely hampered by the on-and-off lockdowns that have afflicted China's key provinces. The market for magnesium powder, widely used in these industries, was also affected.
In June, China produced 6,900 mt of Magnesium Powder, showcasing a 4.10% decrease from the previous month. Magnesium Powder's domestic production demonstrated a downward trend during the last month, i.e., June. According to the local suppliers, the demand from steel mills was persistently weak throughout the month. Despite a recent stable decline in Magnesium prices, the price is still greater than anticipated. Additionally, transactions with high prices are unsatisfactory, and the local steel demand is less resilient due to a significant pessimistic attitude in China's market. Due to the sluggish market, participants anticipate that the domestic production of Magnesium Powder would likely decrease even further, reaching 6,700 mt in July.
According to a statement made by the dean of the China Capital Market Research Institute, despite the country's capital market's ups and downs over the previous ten years, it now has a clear direction for the future. He went on to say that the rule of law, internationalisation, and marketization are currently the two main concerns of China's capital market.