Chinese magnesium alloy market sees smooth transactions
2024-04-24 08:27:51 [Print]
BEIJING (Asian Metal) 24 Apr 24 - In view of rising price gap for magnesium and aluminum, the demand for magnesium alloy increases slightly and Chinese magnesium alloy market sees smooth transactions in the recent days. In view of firm upstream magnesium ingot prices, the mainstream Chinese magnesium alloy prices hover at the present RMB20,900-21,200/t (USD2,902-2,944/t) EXW D/P, an increase of RMB100/t (USD14/t) from late last week. Insiders are of the opinion that the mainstream Chinese magnesium alloy prices would remain firm given firm ingot prices and stable purchase from downstream die casting plants.
"The most competitive offer for magnesium alloy stays at the present RMB20,900/t (USD2,902/t) EXW D/P, and I plan to purchase about 31t today as scheduled," said a magnesium alloy consumer in Guangdong, noting that he purchased about 62t this Monday at RMB20,900/t (USD2,902/t) and around 31t at RMB20,800/t (USD2,888/t). He predicts that his consumption volume in April would reach about 500t in April, while around 400t in March. Considering increasing price gap for magnesium and aluminum, he predicts that the consumption volume for magnesium alloy would increase in the following weeks. Additionally, given firm upstream ingot prices, he anticipates that the mainstream Chinese magnesium alloy prices would stay firm in the coming days.
The consumer, with an annual consumption volume of 7,200t, predicts to consume about 500t of the material in April and consumed about 400t in March. He holds 100t of stocks now, unchanged from late last month. He consumed about 6,000t of the metal in 2023 and predicts to use about 2,500t up till late April in 2024.
"Normally, the prices for magnesium are about 20% higher than aluminum, while now the price inversion exists in magnesium products and it also brings some opportunities for us," said a magnesium alloy consumer in North China, noting that he bought about 20t of the material at RMB21,000/t (USD2,916/t) and receives the same offer today. He anticipates that his consumption volume this month could reach about 100t, while about 80t MoM. Considering stable upstream ingot prices and stable movements, he anticipates that the mainstream Chinese magnesium alloy prices would stay flat in the coming days.
With an annual consumption capacity of 3,000t, the consumer predicts to use about 100t of magnesium alloy in April and used about 80t in March. He holds around 20t of inventories presently, almost identical to late last month. He consumed about 200t of the metal in Q4 of 2023 and predicts to use about 380t up till late April in 2024.
"The most competitive offer for magnesium alloy stays at the present RMB20,900/t (USD2,902/t) EXW D/P, and I plan to purchase about 31t today as scheduled," said a magnesium alloy consumer in Guangdong, noting that he purchased about 62t this Monday at RMB20,900/t (USD2,902/t) and around 31t at RMB20,800/t (USD2,888/t). He predicts that his consumption volume in April would reach about 500t in April, while around 400t in March. Considering increasing price gap for magnesium and aluminum, he predicts that the consumption volume for magnesium alloy would increase in the following weeks. Additionally, given firm upstream ingot prices, he anticipates that the mainstream Chinese magnesium alloy prices would stay firm in the coming days.
The consumer, with an annual consumption volume of 7,200t, predicts to consume about 500t of the material in April and consumed about 400t in March. He holds 100t of stocks now, unchanged from late last month. He consumed about 6,000t of the metal in 2023 and predicts to use about 2,500t up till late April in 2024.
"Normally, the prices for magnesium are about 20% higher than aluminum, while now the price inversion exists in magnesium products and it also brings some opportunities for us," said a magnesium alloy consumer in North China, noting that he bought about 20t of the material at RMB21,000/t (USD2,916/t) and receives the same offer today. He anticipates that his consumption volume this month could reach about 100t, while about 80t MoM. Considering stable upstream ingot prices and stable movements, he anticipates that the mainstream Chinese magnesium alloy prices would stay flat in the coming days.
With an annual consumption capacity of 3,000t, the consumer predicts to use about 100t of magnesium alloy in April and used about 80t in March. He holds around 20t of inventories presently, almost identical to late last month. He consumed about 200t of the metal in Q4 of 2023 and predicts to use about 380t up till late April in 2024.
