Due to the spread of environmental protection and production restrictions in recent months, both upstream and downstream customers have reduced their production. Despite the fact that the local charcoal companies in Fugu and Shenmu have also reduced their production, the limited production has led to a tighter supply of carbon, which in turn has made prices firmer. However, the sale of blue carbon has been reduced along with the downstream metallurgical and chemical companies, which has further weakened the price of blue carbon and increased the loss of blue carbon, forcing companies to plan another round of production cuts.
At the same time, each company's annual summer maintenance approached. The association recommended that each magnesium company and the blue carbon enterprise take turns to overhaul and try to minimize the production of blue carbon and magnesium ingot production, reduce the market supply, and stimulate market vitality.