Resumen de Chinese magnesia disruption worsens
Producers in Haicheng, Dashiqiao shut down; ongoing environmental controls and inspections; export prices stable, EU shippers concerned Magnesia production continues to be severely disrupted in China, as the latest round of environmental inspections are continuing in major producing areas including Liaoning province.
Almost all magnesia producers in Haicheng and Dashiqiao - both cities in Liaoning - have stopped production at present, IM has been told.
The team of officials in charge of the inspections has been stationed in Liaoning since 25 April, and will remain in the area for a month until 25 May*, taking reports and calls from citizens.
Magnesite mining is also severely restricted because no dynamite is being sold at the moment. One contact told IM that the government has yet to announce when dynamite sales will be allowed again. He has heard that the temporary ban may last until mid-June.
Even if a producer manages to source dynamite by then, it will have to restart the furnace and recruit workers before it can start producing again - a process which could take weeks, IM was told.
As such, companies would not be able to restart their operations as soon as the governmental inspection team leaves Liaoning. It is feared new supply will realistically not be available before July.
Even those plants that remain operational are unable to meet demand from of their customers.
"Domestic customers with whom we have long-term relationships are our priority, while for export our production is based on orders," one major producer in Haicheng told IM.
"Now we don't quote because we have no product. Sellers can quote whatever they want but there is no point since we lack material - prices in the market are a mess [at the moment]."
