Magnesium price sliding
2005-05-23 10:07:45 【Print】
BEIJING (Asian Metal) 23 May 05 – Magnesium prices have slid since May Day caused by fewer inquiries and orders, market sources reported.
“Till today, we have only concluded two deals of magnesium ingot, totaling 100t,” a Shaanxi-based producer reported to Asian Metal. “So we’ve lowered our magnesium price to RMB14,000/t, down from RMB14,200/t ex works before the holiday.”
According to the source, buyers are reluctant to buy when prices fall. Inquiries from domestic magnesium alloy and magnesium powder producers have also decreased. Most local magnesium ingot producers carry more stocks this month.
According to the source, the smelter produces about 500tpm of magnesium ingot now out of a 1,000tpm capacity. Domestic magnesium output has dropped significantly in the past two months, added the source.
“Our magnesium ingot has been mainly exported to Japan and Canada this year,” a major magnesium producer revealed to Asian Metal. “Inquiries have decreased a lot. At present, we quote USD1,600/t FOB, down USD10/t since before the holiday.”
According to the source, some foreign buyers now offer USD1,560/t or USD1,570/t FOB, testing the market. But the lowest price the source can accept now is USD1,580/t FOB.
The source claimed that there is a large demand for Chinese magnesium in the US market.
The company produces 1,000tpm of magnesium ingot and plans to reduce its output.
