Magnesium export market runs high
2007-11-21 11:20:23 【Print】
BEIJING (Asian Metal) 21 Nov 07 – Magnesium export market goes on hiking in line with the escalating prices in domestic market. Meanwhile, owing to the tight availability, traders claimed that they have to quote a higher price lest the market jumps again in the near future.
A Shanxi-based producer refused a European buyer’s bid of USD3,450/t FOB and claimed that they would not sell below USD3,600/t FOB for December shipment. “Our offer seems to be high at the moment. However, we have to consider that the domestic price may jump again in the near future from the current level of RMB25,000/t (USD3,365/t) ex works,” said the source, adding that the fast appreciation of Chinese currency also leaves some suppliers unenthusiastic about exporting.
Running with a monthly output of 700-800t, the smelter sells most of the product in the local market. According to the source, most smelters in the region lifted offers to RMB25,000-25,500/t (USD3,365-3,432/t) ex works early this week, RMB500/t up compared to last week.
A trader from Shanxi, who exports 600-700t of magnesium ingot per month, is reluctant to quote for export as domestic price keeps soaring. The source reported that although they received more inquiries from overseas in the past two weeks, they did not conclude many deals. On the one hand, as supply keeps tight, it is hard to obtain material from the domestic market; on the other hand, considering the possible price rise in the following weeks, traders have to quote a higher price to avoid risks, but foreign buyers find it hard to accept those high offers.
The source has been fulfilling some contracts signed late October or early November with concluded price ranging USD3,200-3,300/t FOB. “We tried to quote USD3,600/t FOB for December shipment, but our customers did not agree on such a price,” said the source. “However, we believe the price will continue to go up as we learnt that western consumers are running out of stocks.”
Meanwhile, the source disclosed that some suppliers offer as high as USD3,700/t FOB for shipment in December or next January, but could not confirm if any deals have been sealed at such a high price.
A Shanxi-based producer refused a European buyer’s bid of USD3,450/t FOB and claimed that they would not sell below USD3,600/t FOB for December shipment. “Our offer seems to be high at the moment. However, we have to consider that the domestic price may jump again in the near future from the current level of RMB25,000/t (USD3,365/t) ex works,” said the source, adding that the fast appreciation of Chinese currency also leaves some suppliers unenthusiastic about exporting.
Running with a monthly output of 700-800t, the smelter sells most of the product in the local market. According to the source, most smelters in the region lifted offers to RMB25,000-25,500/t (USD3,365-3,432/t) ex works early this week, RMB500/t up compared to last week.
A trader from Shanxi, who exports 600-700t of magnesium ingot per month, is reluctant to quote for export as domestic price keeps soaring. The source reported that although they received more inquiries from overseas in the past two weeks, they did not conclude many deals. On the one hand, as supply keeps tight, it is hard to obtain material from the domestic market; on the other hand, considering the possible price rise in the following weeks, traders have to quote a higher price to avoid risks, but foreign buyers find it hard to accept those high offers.
The source has been fulfilling some contracts signed late October or early November with concluded price ranging USD3,200-3,300/t FOB. “We tried to quote USD3,600/t FOB for December shipment, but our customers did not agree on such a price,” said the source. “However, we believe the price will continue to go up as we learnt that western consumers are running out of stocks.”
Meanwhile, the source disclosed that some suppliers offer as high as USD3,700/t FOB for shipment in December or next January, but could not confirm if any deals have been sealed at such a high price.
