Chinese magnesium alloy market sees scarce deals
2023-03-23 08:24:23 [Print]
BEIJING (Asian Metal) 23 Mar 23 - Considering weakening demand from downstream die casting and 3C plants, Chinese magnesium alloy market moved slowly in the recent days. Meanwhile, in view of softening upstream magnesium ingot prices, the prevailing Chinese magnesium alloy prices followed suit and decreased to the range of RMB22,200-22,500/t (USD3,217-3,260/t) EXW D/P, down by RMB200/t (USD28/t) from late last week. Insiders are of the opinion that the mainstream Chinese magnesium alloy prices would edge down further in the coming days discouraged by slack transactions and potential downward magnesium ingot prices.
"Due to softening magnesium alloy price trend and plenty stocks in hand, I followed magnesium alloy market slowly and just prefer to lock about 31t with the target price of RMB22,200/t (USD3,217/t) EXW D/P late this week," said a magnesium alloy consumer in South China, noting that he last locked about 31t of the metal early this week at RMB22,400/t (USD3,246/t), but he used to purchase the metal steadily for about 100t each time before early January. Taking softening price trend for upstream magnesium ingot prices and poor market anticipation among die casting plants into consideration, he forecasts the mainstream Chinese magnesium alloy prices would edge down by RMB100/t (USD14/t) in the next two days.
With an annual consumption volume of around 8,000t, the consumer predicts to use about 500t of magnesium alloy in March and consumed a similar volume in February. He holds about 200t of stocks now, while about 300t late last month. He predicts to consume about 1,600t of magnesium alloy in Q1 of 2023 and consumed about 6,000t of the metal in 2022.
"I even didn't know how to describe the current market, we just experienced a very slack market state since late January and market competition also became fierce," said a magnesium alloy producer in North China, noting that he failed to fight for a deal of 62t at the price of RMB22,300/t (USD3,231/t) EXW D/P due to watchful attitudes from his clients. He last sold about 31t this Tuesday at RMB22,400/t (USD3,246/t) and most buyers kept watching the market restricted by slow demand among die casting industry and potential softening ingot prices. He predicts the prevailing Chinese magnesium alloy prices would edge down by RMB200/t (USD28/t) in the coming days.
The producer, with an annual production capacity of 15,000t, predicts to produce about 1,100t of magnesium alloy in March and produced about 1,200t in February. He holds about 200t of stocks now, while no stock late last month. He produced about 13,500t of the metal in 2022 and predicts to produce about 3,200t of the metal in 2023.
"Due to softening magnesium alloy price trend and plenty stocks in hand, I followed magnesium alloy market slowly and just prefer to lock about 31t with the target price of RMB22,200/t (USD3,217/t) EXW D/P late this week," said a magnesium alloy consumer in South China, noting that he last locked about 31t of the metal early this week at RMB22,400/t (USD3,246/t), but he used to purchase the metal steadily for about 100t each time before early January. Taking softening price trend for upstream magnesium ingot prices and poor market anticipation among die casting plants into consideration, he forecasts the mainstream Chinese magnesium alloy prices would edge down by RMB100/t (USD14/t) in the next two days.
With an annual consumption volume of around 8,000t, the consumer predicts to use about 500t of magnesium alloy in March and consumed a similar volume in February. He holds about 200t of stocks now, while about 300t late last month. He predicts to consume about 1,600t of magnesium alloy in Q1 of 2023 and consumed about 6,000t of the metal in 2022.
"I even didn't know how to describe the current market, we just experienced a very slack market state since late January and market competition also became fierce," said a magnesium alloy producer in North China, noting that he failed to fight for a deal of 62t at the price of RMB22,300/t (USD3,231/t) EXW D/P due to watchful attitudes from his clients. He last sold about 31t this Tuesday at RMB22,400/t (USD3,246/t) and most buyers kept watching the market restricted by slow demand among die casting industry and potential softening ingot prices. He predicts the prevailing Chinese magnesium alloy prices would edge down by RMB200/t (USD28/t) in the coming days.
The producer, with an annual production capacity of 15,000t, predicts to produce about 1,100t of magnesium alloy in March and produced about 1,200t in February. He holds about 200t of stocks now, while no stock late last month. He produced about 13,500t of the metal in 2022 and predicts to produce about 3,200t of the metal in 2023.
