Monthly Magnesia Market Report Dec 2018
2019-01-22 17:08:26 【Print】
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1. Market Highlights
Chinese magnesia market continued to be stable in December 2018. Affected by the environmental acceptance check conducted by the central environmental team and the strict environmental inspection made by local government, dead burned magnesia producers in Liaoning, especially in Dashiqiao, halted production completely in November 2017. After entering December 2018, the supply for dead burned magnesia in the market picked up gradually as producers resumed production after the environmental acceptance check ended and the local environmental inspection was loosened. However, as Henan and other provinces continued to carry out strict policy on staggering peak production, it's difficult for dead burned magnesia transactions in the market to increase during December. As for fused magnesia, producers kept stable production throughout December, but the spot market saw limited demand and slightly decreased prices as downstream magnesia carbon brick producers merely kept low operating rates. As for caustic calcined magnesia, the material which can be widely used in many areas, the market was generally stable during December and the demand from some downstream industries rose, especially against the backdrop of strict environmental inspections in China.
Meanwhile, overseas customers raised their purchase volumes for Chinese magnesia in December 2018. In November 2018, overseas customers were relatively cautious about purchasing Chinese magnesia affected by strict environmental inspections in China, but in December 2018, the market was relatively steady and overseas customers restarted to refill stocks of magnesia, especially of some specifications of the material, of which the supply became tight. Nevertheless, overseas customers refused to accept higher prices, which made Chinese exporters have difficulties in raising export prices.
Chinese magnesia market continued to be stable in December 2018. Affected by the environmental acceptance check conducted by the central environmental team and the strict environmental inspection made by local government, dead burned magnesia producers in Liaoning, especially in Dashiqiao, halted production completely in November 2017. After entering December 2018, the supply for dead burned magnesia in the market picked up gradually as producers resumed production after the environmental acceptance check ended and the local environmental inspection was loosened. However, as Henan and other provinces continued to carry out strict policy on staggering peak production, it's difficult for dead burned magnesia transactions in the market to increase during December. As for fused magnesia, producers kept stable production throughout December, but the spot market saw limited demand and slightly decreased prices as downstream magnesia carbon brick producers merely kept low operating rates. As for caustic calcined magnesia, the material which can be widely used in many areas, the market was generally stable during December and the demand from some downstream industries rose, especially against the backdrop of strict environmental inspections in China.
Meanwhile, overseas customers raised their purchase volumes for Chinese magnesia in December 2018. In November 2018, overseas customers were relatively cautious about purchasing Chinese magnesia affected by strict environmental inspections in China, but in December 2018, the market was relatively steady and overseas customers restarted to refill stocks of magnesia, especially of some specifications of the material, of which the supply became tight. Nevertheless, overseas customers refused to accept higher prices, which made Chinese exporters have difficulties in raising export prices.
