Chinese magnesium ingot prices firm on tight supply
2016-08-25 09:26:05 [Print]
BEIJING (Asian Metal) 25 Aug 16 - On account of the light stocks from suppliers and the production cost increasing, the magnesium ingot prices moved up by RMB100/t (USD15/t) in the first two days of this week and continued to go up by RMB100/t (USD15/t) this Wednesday to RMB14,200-14,300/t (USD2,141-2,156/t) ex work in Shaanxi and RMB14,300-14,500/t (USD2,156-2,187/t) ex works in Shanxi respectively. Currently, the downstream consumers and traders purchase the material for immediate use and the market runs steadily. Owing to the tight supply and buyers’ hand-to-mouth purchasing style, insiders are of the opinion that the prices will remain firm at the current level in the rest of this week.
“I sold 80 tons of the material at RMB14,250/t (USD2,149/t) ex works this Tuesday and tried to conclude an order of 40 tons at RMB14,300/t (USD2,156/t) ex works this Wednesday, but failed,” said a magnesium ingot producer in Shaanxi, who noted that he is reluctant to sell the material lower than RMB14,300/t (USD2,156/t) ex works at present. According to the source, the upstream ferrosilicon prices went up by about RMB300/t (USD45/t) to RMB14,700/t (USD2,217/t) ex works with D/A delivered, and he bought 120 tons on rigid demand early this week; in addition, he only has 80 tons of stocks on hand now, so he is unwilling to decrease offers to strive orders. Taking the tight supply and steady transactions into considerations, he believes that the prices are likely to hover at around RMB14,300/t (USD2,156/t) ex works in the forthcoming days.
The producer, whose annual production capacity of magnesium ingot is 20,000 tons, produced 1,200 tons of the material in July and looks to hold the stable volume in August.
“I finalized an order of 80 tons at RMB14,400/t (USD2,171/t) ex works this Tuesday, up by about RMB150/t (USD22/t) against that of last Friday, and we kept increasing the quotation by RMB50/t (USD8/t) to RMB14,450/t (USD2,179/t) ex works this Wednesday,” said a magnesium ingot producer in Shanxi, who finalized a deal of 40 tons successfully at last. Even though most buyers only place orders in minimal volume to guarantee their basic requirements, he thinks that the tight supply in the main production areas will support the prices to keep firm in the coming days.
With an annual production capacity of 20,000 tons, the magnesium ingot producer’s output was about 1,000 tons in July and plans to reduce the volume to 900 tons in August, holding no stocks on hand right now.
“I sold 80 tons of the material at RMB14,250/t (USD2,149/t) ex works this Tuesday and tried to conclude an order of 40 tons at RMB14,300/t (USD2,156/t) ex works this Wednesday, but failed,” said a magnesium ingot producer in Shaanxi, who noted that he is reluctant to sell the material lower than RMB14,300/t (USD2,156/t) ex works at present. According to the source, the upstream ferrosilicon prices went up by about RMB300/t (USD45/t) to RMB14,700/t (USD2,217/t) ex works with D/A delivered, and he bought 120 tons on rigid demand early this week; in addition, he only has 80 tons of stocks on hand now, so he is unwilling to decrease offers to strive orders. Taking the tight supply and steady transactions into considerations, he believes that the prices are likely to hover at around RMB14,300/t (USD2,156/t) ex works in the forthcoming days.
The producer, whose annual production capacity of magnesium ingot is 20,000 tons, produced 1,200 tons of the material in July and looks to hold the stable volume in August.
“I finalized an order of 80 tons at RMB14,400/t (USD2,171/t) ex works this Tuesday, up by about RMB150/t (USD22/t) against that of last Friday, and we kept increasing the quotation by RMB50/t (USD8/t) to RMB14,450/t (USD2,179/t) ex works this Wednesday,” said a magnesium ingot producer in Shanxi, who finalized a deal of 40 tons successfully at last. Even though most buyers only place orders in minimal volume to guarantee their basic requirements, he thinks that the tight supply in the main production areas will support the prices to keep firm in the coming days.
With an annual production capacity of 20,000 tons, the magnesium ingot producer’s output was about 1,000 tons in July and plans to reduce the volume to 900 tons in August, holding no stocks on hand right now.
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Unit:INR/kg
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Unit: pcs
