Magnesium prices soar
2007-11-06 09:36:01 【Print】
BEIJING (Asian Metal) 6 Nov 07 – The magnesium price has kept soaring since last Friday and hits new high of RMB23,000/t (USD3,083/t) ex works early this week. Although activities slow down due to the skyrocketing price, most producers still take higher expectations on the future market.
A Shanxi-based smelter is running with a monthly output of 150-200tpm as some of the furnaces are being maintained. Additionally, the short supply of coal is another reason that the smelter is running below its capacity of 400tpm.
“90% of our product is sold to sponge titanium producers, so our price is usually RMB300-500/t (USD40-67/t) higher than that of the common ingot,” said the source. “Furthermore, the current price gap between our products and common ingot is widening due to the extremely tight supply.”
The source sold a batch of magnesium ingot to a titanium producer at RMB23,500/t (USD3,150/t) ex works yesterday while the previous deal was made at RMB23,000/t (USD3,083/t) ex works late last week. Meanwhile, the source reported that the price for common magnesium ingot keeps firming up to current RMB22,700-23,000/t (USD3,043-3,083/t) ex works against RMB22,500-22,700/t (USD3,016-3,043/t) ex works late last week.
A Shanxi-based trader, who trades 400-500tpm of magnesium ingot, confirmed that the market jumped again in the weekend prompted by supply insufficiency. “Few smelters have materials to put into the spot market. No wonder that some smelters quote as high as RMB24,000/t (USD3,217/t) ex works,” said the source.
However, the source revealed that fewer activities are seen in the market due to the skyrocketing price. Only those who are in urgent need to purchase place small orders to maintain production, but others prefer to watch the market for while.
The source purchased a batch of common magnesium ingot at RMB22,500/t (USD3,016/t) delivered to Tianjin last Tuesday and confirmed the mainstream price rose to RMB22,500-22,700/t ex works last Friday. “I learnt that a few small orders were reportedly sealed at as high as RMB23,000/t (USD3,083/t) ex works yesterday, but I don’t think the mainstream price has climbed up to such a high level,” said the source. “Actually, we refused an offer of RMB23,000/t (USD3,083/t) ex works made by a regular supplier who also acknowledged that more buyers begin to watch the market.”
Current magnesium ingot market appears chaotic as quotations for the materials are in a wide range of RMB22,700-23,500/t (USD3,043-3,150/t) ex works. Although both sources predict the magnesium ingot market will continue to rise on tight supply, they believe it needs time for consumers to accept the escalating price.
A Shanxi-based smelter is running with a monthly output of 150-200tpm as some of the furnaces are being maintained. Additionally, the short supply of coal is another reason that the smelter is running below its capacity of 400tpm.
“90% of our product is sold to sponge titanium producers, so our price is usually RMB300-500/t (USD40-67/t) higher than that of the common ingot,” said the source. “Furthermore, the current price gap between our products and common ingot is widening due to the extremely tight supply.”
The source sold a batch of magnesium ingot to a titanium producer at RMB23,500/t (USD3,150/t) ex works yesterday while the previous deal was made at RMB23,000/t (USD3,083/t) ex works late last week. Meanwhile, the source reported that the price for common magnesium ingot keeps firming up to current RMB22,700-23,000/t (USD3,043-3,083/t) ex works against RMB22,500-22,700/t (USD3,016-3,043/t) ex works late last week.
A Shanxi-based trader, who trades 400-500tpm of magnesium ingot, confirmed that the market jumped again in the weekend prompted by supply insufficiency. “Few smelters have materials to put into the spot market. No wonder that some smelters quote as high as RMB24,000/t (USD3,217/t) ex works,” said the source.
However, the source revealed that fewer activities are seen in the market due to the skyrocketing price. Only those who are in urgent need to purchase place small orders to maintain production, but others prefer to watch the market for while.
The source purchased a batch of common magnesium ingot at RMB22,500/t (USD3,016/t) delivered to Tianjin last Tuesday and confirmed the mainstream price rose to RMB22,500-22,700/t ex works last Friday. “I learnt that a few small orders were reportedly sealed at as high as RMB23,000/t (USD3,083/t) ex works yesterday, but I don’t think the mainstream price has climbed up to such a high level,” said the source. “Actually, we refused an offer of RMB23,000/t (USD3,083/t) ex works made by a regular supplier who also acknowledged that more buyers begin to watch the market.”
Current magnesium ingot market appears chaotic as quotations for the materials are in a wide range of RMB22,700-23,500/t (USD3,043-3,150/t) ex works. Although both sources predict the magnesium ingot market will continue to rise on tight supply, they believe it needs time for consumers to accept the escalating price.
