Magnesium price to slide further

BEIJING (Asian Metal) 29 Jun 05 – According to market sources, the magnesium price has slid to RMB13,300-13,600/t ex works, USD1,500-1,530/t FOB in the past two weeks, and is likely to continue dropping, as most producers are selling stocks and competing for limited orders.

“Most magnesium producers in our local market quote around RMB13,400-13,500/t ex works for magnesium ingot 99.9%min, down from RMB13,600-13,800/t in early June,” a Yuncheng-based magnesium producer told Asian Metal.Asian Metal Copyright “To compete for limited orders, we have to sell at lower prices, quoting USD1,490t, FOB.Asian Metal Copyright “There are much fewer inquiries for magnesium in June than in May.Asian Metal Copyright“Most magnesium producers in our local market quote around RMB13,400-13,500t ex works for magnesium ingot 99.Asian Metal Copyright”

According to the source, more domestic producers have been exporting more magnesium ingot to Japan, South Korea and some Southeast Asian countries in the past two months, while export volumes to Europe and Canada have decreased.

“We have more than 1,000t o magnesium ingot in stock now,” a major domestic magnesium producer reported to Asian Metal. “To compete for limited orders, we have to sell at lower prices, quoting USD1,490/t, FOB.Asian Metal Copyright “To compete for limited orders, we have to sell at lower prices, quoting USD1,490t, FOB.Asian Metal Copyright”

The source added that since many magnesium producers have stopped production and are selling stocks, magnesium prices are expected to continue go down in July.