For this reason, many companies have been forced to accept this reality. In November this year, Matarco, the largest magnesium product manufacturer in the United States, publicly stated that due to the serious lack of magnesium metal supply, the company will start to reduce production capacity from 2022. At the same time, its supplier customers have suspended the delivery of goods.

Many American manufacturers reluctantly said that the global market would tremble when the magnesium companies in Fugu sneezed.

However, although China has an absolute advantage in magnesium metal resources, it has not improved in terms of price. In 2020, the price of domestically exported magnesium metal is about US$3,900 per ton, or 24,000 yuan.

The price of imported magnesium metal is as high as 38,200 US dollars per ton, which is 240,000 yuan, and the gap between import and export has reached as much as 10 times.

Therefore, from this point of view, the price of domestic magnesium metal has been suppressed to the lowest level, which is very similar to the sale of rare earths at a low price.

However, the reason is also very obvious, because there are too many domestic magnesium metal mining and processing enterprises, resulting in the expansion of magnesium metal production capacity, and the price naturally cannot be sold.

Therefore, Yulin will ask to reduce production capacity, so as to realize the regulation of the international market.