Chinese magnesium ingot prices increase sharply
2023-04-12 08:22:06 [Print]
BEIJING (Asian Metal) 12 Apr 23 - As most suppliers had strong intentions to lift offers supported by the possibility state for output reduction in late April and panic purchase from buyers, the prevailing Chinese magnesium ingot prices increased sharply to the present RMB24,000-24,500/t (USD3,478-3,550/t) EXW D/P, almost up by RMB2,500/t (USD362/t) from late last week. More buyers with orders began to purchase the material cautiously, and market movements increased slightly against late last week. Insiders are of the opinion that the prevailing Chinese magnesium ingot prices would move up further in the coming days given strong intentions to move up offers from suppliers.
"More buyers began their panic purchase today, I sold 62t of magnesium ingot at RMB23,000/t (USD3,333/t) EXW D/P this morning and then concluded a deal of 31t at RMB24,000/t (USD3,478/t) in two hours," said a magnesium ingot producer in North China, claiming that he won't sell any metal below RMB24,500/t (USD3,550/t) after that and also received a target order for 62t at this level. He noted that prices moved up fast due to the rumor about suspension for iron stove among some plants in Shaanxi in late April and strong intentions to move up offers from suppliers. He noted that once the related issue came true in late April, the supply would decrease by almost half since late April in Fugu County, so he had strong confidence in the price trend. Additionally, due to panic purchase from buyers, most suppliers also regained confidence and the mainstream prices would go up further by RMB500/t (USD72/t) in the forthcoming days.
With an annual production capacity of 35,000t, the producer predicts to produce about 3,000t of the metal in April and produced a similar volume last month. He holds about 1,000t of stocks, unchanged from late last month. He produced about 33,500t in 2022 and produced about 9,000t in Q1 of 2023.
"The most competitive offer we received increased sharply to the present RMB24,000/t (USD3,478/t) EXW D/P and the supplier only could sell 31t," said a magnesium ingot consumer in North China, noting another regular supplier rejected to sell the metal below RMB24,500/t (USD3,550/t). He only had about 100t of stocks presently and intends to purchase 100t as scheduled. Additionally, he noted that his last purchased around 100t at RMB21,600/t (USD3,130/t) late last week and thought he should purchase more at that time. Given strong intentions to move up quotations for fear of crisis of supply caused by the uncertain policy issue, he predicts the mainstream prices for magnesium ingot would increase further by RMB500/t (USD72/t) in the coming days.
The consumer, with an annual consumption volume of around 8,500t, predicts to consume about 600t of magnesium ingot in April and locked a similar volume in March. He holds about 150t of stocks now, down by 20% from late last month. He consumed about 7,200t of the metal in 2022 and locked about 1,900t in Q1 of 2023.
"More buyers began their panic purchase today, I sold 62t of magnesium ingot at RMB23,000/t (USD3,333/t) EXW D/P this morning and then concluded a deal of 31t at RMB24,000/t (USD3,478/t) in two hours," said a magnesium ingot producer in North China, claiming that he won't sell any metal below RMB24,500/t (USD3,550/t) after that and also received a target order for 62t at this level. He noted that prices moved up fast due to the rumor about suspension for iron stove among some plants in Shaanxi in late April and strong intentions to move up offers from suppliers. He noted that once the related issue came true in late April, the supply would decrease by almost half since late April in Fugu County, so he had strong confidence in the price trend. Additionally, due to panic purchase from buyers, most suppliers also regained confidence and the mainstream prices would go up further by RMB500/t (USD72/t) in the forthcoming days.
With an annual production capacity of 35,000t, the producer predicts to produce about 3,000t of the metal in April and produced a similar volume last month. He holds about 1,000t of stocks, unchanged from late last month. He produced about 33,500t in 2022 and produced about 9,000t in Q1 of 2023.
"The most competitive offer we received increased sharply to the present RMB24,000/t (USD3,478/t) EXW D/P and the supplier only could sell 31t," said a magnesium ingot consumer in North China, noting another regular supplier rejected to sell the metal below RMB24,500/t (USD3,550/t). He only had about 100t of stocks presently and intends to purchase 100t as scheduled. Additionally, he noted that his last purchased around 100t at RMB21,600/t (USD3,130/t) late last week and thought he should purchase more at that time. Given strong intentions to move up quotations for fear of crisis of supply caused by the uncertain policy issue, he predicts the mainstream prices for magnesium ingot would increase further by RMB500/t (USD72/t) in the coming days.
The consumer, with an annual consumption volume of around 8,500t, predicts to consume about 600t of magnesium ingot in April and locked a similar volume in March. He holds about 150t of stocks now, down by 20% from late last month. He consumed about 7,200t of the metal in 2022 and locked about 1,900t in Q1 of 2023.
