Chinese caustic calcined magnesia market faces weak demand
2023-03-17 08:34:23 [Print]
BEIJING (Asian Metal) 17 Mar 23 - Considering low demand from the terminal market this month, the Chinese caustic calcined magnesia market remains dim in the past two weeks
A producer in Haicheng claimed, "We held no inventory late last month while we have almost 10,000t of stocks now. We would reduce 30% of our production next month if the market remains dim". They quoted RMB900/t (USD130/t) EXW D/A 180 days and considered no concession for caustic calcined magnesia MgO 90%min, SiO2 5%max, CaO 2%max, 200mesh from early this week . They closed no deal yet this week and they last sold about 800t at such price late last week. The producer last purchased nearly 1,000t of gasification coal at RMB1,600/t (USD232/t) delivered from Inner Mongolia early this month, so they prefer to hold their price stable and predict that the mainstream prices of Chinese caustic calcined magnesia would keep unchanged in the week to come.
Based on the production capacity of 800,000tpy of caustic calcined magnesia, the producer predicts to produce nearly 30,000t in March, similar to last month. They hold around 10,000t of stocks now.
Another producer in Haicheng stated, "Due to the soft demand from the downstream market, we decide to halve our production to around 1,000t next month". They offer RMB950/t (USD138/t) EXW D/P with no concession for caustic calcined magnesia MgO 90%min, SiO2 4 . 5%max, CaO 2%max, 200mesh since early this week . The producer did not receive any inquiries after they last sold around 100t at such price almost ten days ago. They intend to hold the price stable because they last bought about 2,000t of anthracite at RMB1,650/t (USD239/t) delivered from Inner Mongolia and believe that the mainstream prices of Chinese caustic calcined magnesia would keep flat in the following week.
The producer, with an annual production capacity of 200,000t of caustic calcined magnesia, predicts to produce around 2,000t in March, in line with last month. They have an inventory of approximately 1,500t at present.
. However, most producers plan to reduce production from next month rather than lower their prices due to high production costs. Currently, the mainstream prices of Chinese caustic calcined magnesia stand at MgO 90%min, SiO2 3%max, CaO 2%max at RMB950-1,000/t (USD138-145/t) EXW D/A 180 days from early this week . Supported by high production costs, insiders predict that the mainstream prices of Chinese caustic calcined magnesia would remain stable in the coming week.
A producer in Haicheng claimed, "We held no inventory late last month while we have almost 10,000t of stocks now. We would reduce 30% of our production next month if the market remains dim". They quoted RMB900/t (USD130/t) EXW D/A 180 days and considered no concession for caustic calcined magnesia MgO 90%min, SiO2 5%max, CaO 2%max, 200mesh from early this week . They closed no deal yet this week and they last sold about 800t at such price late last week. The producer last purchased nearly 1,000t of gasification coal at RMB1,600/t (USD232/t) delivered from Inner Mongolia early this month, so they prefer to hold their price stable and predict that the mainstream prices of Chinese caustic calcined magnesia would keep unchanged in the week to come.
Based on the production capacity of 800,000tpy of caustic calcined magnesia, the producer predicts to produce nearly 30,000t in March, similar to last month. They hold around 10,000t of stocks now.
Another producer in Haicheng stated, "Due to the soft demand from the downstream market, we decide to halve our production to around 1,000t next month". They offer RMB950/t (USD138/t) EXW D/P with no concession for caustic calcined magnesia MgO 90%min, SiO2 4 . 5%max, CaO 2%max, 200mesh since early this week . The producer did not receive any inquiries after they last sold around 100t at such price almost ten days ago. They intend to hold the price stable because they last bought about 2,000t of anthracite at RMB1,650/t (USD239/t) delivered from Inner Mongolia and believe that the mainstream prices of Chinese caustic calcined magnesia would keep flat in the following week.
The producer, with an annual production capacity of 200,000t of caustic calcined magnesia, predicts to produce around 2,000t in March, in line with last month. They have an inventory of approximately 1,500t at present.