Magnesium Market Report July 2013

Demand for magnesium softens and buying activity stays at a low level during early July when economic environment kept sluggish.Asian Metal Copyright Shipments kept unfavorable in magnesium powder spot market and producers decreased their offers to RMB15,900-16,100t USD2,598-2,630t ex-works which mainly depended on long-term contracts.Asian Metal Copyright In addition, main producers had reduced their production capacities due to the severe heat but supply still exceeded demand.Asian Metal CopyrightDemand for magnesium softens and buying activity stays at a low level during early July when economic environment kept sluggish.Asian Metal Copyright Hence, prices still had space to decline.Asian Metal Copyright In addition, main producers had reduced their production capacities due to the severe heat but supply still exceeded demand.Asian Metal Copyright Producers decreased their quotations in order to obtain orders because of the shrinking magnesium ingot production cost as prices of both coal and ferrosilicon remained at a low level. Offers of magnesium ingot dropped to RMB14,650-14,850/t (USD2,393-2,426/t) in Shaanxi while the figures at RMB14,850-15,050/t (USD2,426-2,459/t) in Shanxi. Shipments kept unfavorable in magnesium powder spot market and producers decreased their offers to RMB15,900-16,100/t (USD2,598-2,630/t) ex-works which mainly depended on long-term contracts. Meanwhile, prices of magnesium alloy fell to RMB17,000-17,200/t (USD2,777-2,810/t) ex-works as magnesium ingot prices declined, but there were rare deals concluded.Asian Metal Copyright In addition, main producers had reduced their production capacities due to the severe heat but supply still exceeded demand.Asian Metal Copyright