Chinese caustic calcined magnesia producers hold low operation rates
2023-04-19 08:23:02 [Print]
BEIJING (Asian Metal) 19 Mar 23 - Dragged by soften market, most suppliers of caustic calcined magnesia held low operation rates during the past month. The current mainstream prices of Chinese caustic calcined magnesia 90%min 200mesh stand at RMB950-1,000/t (USD138-147/t) EXW D/A 180 days, unchanged from last week. Insiders predict that the mainstream prices of Chinese caustic calcined magnesia would keep stable in the coming week supported by production cost but the operation rates would still remain low level due to dim market.
A producer in Liaoning mentioned, "Due to weak market demand, most local producers halted production in this month, including us. We suspended production since early this year and could consider accepting the price as low as RMB950/t (USD138/t) EXW D/P for caustic calcined magnesia 90%min 200mesh but failed to close any deal this week due to no inquiry," the producer noted. While they last sold around 200t at such price in the middle of last month. They had no plan to resume production next month due to few deals. They estimated that the mainstream prices of Chinese caustic calcined magnesia would keep stable in the coming week supported by production cost.
Based on a production capacity of 50,000tpy, they recorded no production in April, unchanged from last month, holding an inventory of 2,000t presently.
"Discouraged by weak market demand during the past month, we plan to reduce the production this month. Actually, we didn't produce at full capacity since the beginning of this year," another producer in Liaoning stated. They quoted around RMB950/t (USD138/t) EXW D/P without any concession for caustic calcined magnesia 90%min 200 mesh over the half a month and last sold about 100t two weeks ago. Driven by production cost, they predicted that the mainstream prices of Chinese caustic calcined magnesia would keep stable as following days but the operation rates would keep low level due to lackluster market.
With an annual production capacity of 48,000t, they produced about 1,000t this month, decreased by 500t from last month. They hold around 1,000t of stocks at the moment.
A producer in Liaoning mentioned, "Due to weak market demand, most local producers halted production in this month, including us. We suspended production since early this year and could consider accepting the price as low as RMB950/t (USD138/t) EXW D/P for caustic calcined magnesia 90%min 200mesh but failed to close any deal this week due to no inquiry," the producer noted. While they last sold around 200t at such price in the middle of last month. They had no plan to resume production next month due to few deals. They estimated that the mainstream prices of Chinese caustic calcined magnesia would keep stable in the coming week supported by production cost.
Based on a production capacity of 50,000tpy, they recorded no production in April, unchanged from last month, holding an inventory of 2,000t presently.
"Discouraged by weak market demand during the past month, we plan to reduce the production this month. Actually, we didn't produce at full capacity since the beginning of this year," another producer in Liaoning stated. They quoted around RMB950/t (USD138/t) EXW D/P without any concession for caustic calcined magnesia 90%min 200 mesh over the half a month and last sold about 100t two weeks ago. Driven by production cost, they predicted that the mainstream prices of Chinese caustic calcined magnesia would keep stable as following days but the operation rates would keep low level due to lackluster market.
With an annual production capacity of 48,000t, they produced about 1,000t this month, decreased by 500t from last month. They hold around 1,000t of stocks at the moment.
