Chinese dead burned magnesia market sees soft demand
2023-03-16 08:34:42 [Print]
BEIJING (Asian Metal) 16 Mar 23 – The Chinese dead burned magnesia market faces weak demand since early this month. However, most producers hold their prices stable for Chinese dead burned magnesia MgO 90%min, SiO2 5%max, CaO 2.5%max, B.D. 3.10min, 3-15mm at RMB1,150-1,200/t (USD167-174/t) EXW D/A 180 days, in line with early this week. Supported by high production costs, insiders predict that the mainstream prices of Chinese dead burned magnesia would keep flat in the week to come.
"The demand from the downstream market remains weak since early this month as our production increased by nearly 2,000t compared with about 3,000t late last month. We only closed one deal yet this month", a producer from Dashiqiao claimed. They quoted RMB1,350/t (USD196/t) EXW D/A 180 days and could accept the concession as much as RMB50/t (USD7/t) for dead burned magnesia MgO 92%min, SiO2 4.5%max, CaO 2%max, B.D. 3.15min, 150-200mm since early this week. They last sold about 300t at RMB1,300/t (USD189/t) at the beginning this month. As they last purchased around 3,000t of coking coal at RMB2,700/t (USD393/t) delivered from Ningxia early last month, they intend to keep their price firm in spite of weak demand and believe that the mainstream prices of Chinese dead burned magnesia would keep steady in the following week.
Based on the production capacity of 80,000tpy of dead burned magnesia, the producer predicts to produce around 2,700t in March, compared with about 3,000t last month. They have approximately 6,000t of stocks now.
Another producer in Haicheng revealed, "We prefer to reduce production this month rather than decrease our price as the demand from the end market stays weak from early this month". They offered RMB1,250/t (USD182/t) EXW D/P and refused any lower prices for dead burned magnesia MgO 92%min, SiO2 4.3%max, CaO 1.5%max, B.D. 3.20min, 3-15mm, unchanged from early this week. They closed no deal today and last sold around 200t at such price about one week ago. The producer stated that the prices of raw materials remain high while the market stays sluggish, so they predict that the mainstream prices of Chinese dead burned magnesia would keep unchanged in the coming week.
The producer, with an annual production capacity of 80,000t of dead burned magnesia, predicts to produce nearly 3,000t in March, compared with about 4,000t last month. They have an inventory of around 4,000t at present.
"The demand from the downstream market remains weak since early this month as our production increased by nearly 2,000t compared with about 3,000t late last month. We only closed one deal yet this month", a producer from Dashiqiao claimed. They quoted RMB1,350/t (USD196/t) EXW D/A 180 days and could accept the concession as much as RMB50/t (USD7/t) for dead burned magnesia MgO 92%min, SiO2 4.5%max, CaO 2%max, B.D. 3.15min, 150-200mm since early this week. They last sold about 300t at RMB1,300/t (USD189/t) at the beginning this month. As they last purchased around 3,000t of coking coal at RMB2,700/t (USD393/t) delivered from Ningxia early last month, they intend to keep their price firm in spite of weak demand and believe that the mainstream prices of Chinese dead burned magnesia would keep steady in the following week.
Based on the production capacity of 80,000tpy of dead burned magnesia, the producer predicts to produce around 2,700t in March, compared with about 3,000t last month. They have approximately 6,000t of stocks now.
Another producer in Haicheng revealed, "We prefer to reduce production this month rather than decrease our price as the demand from the end market stays weak from early this month". They offered RMB1,250/t (USD182/t) EXW D/P and refused any lower prices for dead burned magnesia MgO 92%min, SiO2 4.3%max, CaO 1.5%max, B.D. 3.20min, 3-15mm, unchanged from early this week. They closed no deal today and last sold around 200t at such price about one week ago. The producer stated that the prices of raw materials remain high while the market stays sluggish, so they predict that the mainstream prices of Chinese dead burned magnesia would keep unchanged in the coming week.
The producer, with an annual production capacity of 80,000t of dead burned magnesia, predicts to produce nearly 3,000t in March, compared with about 4,000t last month. They have an inventory of around 4,000t at present.
