Magnesium market still strong
2007-12-17 10:17:54 【Print】
BEIJING (Asian Metal) 17 Dec 07 – Magnesium ingot market saw another significant price increase last week and the strong upward trend continues. Most participants cannot give any judgment on the future market, but generally agree that the market will not drop in the short term.
Most smelters in major producing areas such as Shanxi, Shaanxi and Ningxia started quoting RMB29,500-30,000/t (USD4,008-4,076/t) ex works in the middle of last week, almost RMB1,000/t (USD136/t) higher than the quotations at the beginning of the week. Some smelters who sold materials at around RMB28,000/t (USD3,804/t) ex works early last week reported deals at RMB29,000/t ex works for even higher prices on Thursday and Friday.
A Shanxi-based producer, running at its capacity of 10,000tpy, claimed that they would not sell at RMB29,500/t (USD4,008/t) ex works, predicting that the price will soon hit RMB30,000/t (USD4,076/t) ex works.
The source usually purchases coal from Linfen, Shanxi where all the coal mines were forced to close after the fatal accident early this month. “All the magnesium smelters in Yuncheng are scrambling for coal elsewhere as the coal supply will be tightening in the following one or two months when most mines will close during the Spring Festival,” said the source.
A trader from Shanxi confirmed that the market hiked again last week. The offers he received last Friday were around RMB29,500/t (USD4,008/t) ex works against RMB28,000/t (USD3,804/t) ex works at the beginning of last week. “I usually purchase from Wenxi and Yuncheng, but many smelters in the region raised offers greatly last week in the name of tight supply of coal,” said the source. However, the source managed to purchase 40-50t of magnesium ingot at around RMB28,500/t (USD3,872/t) ex works from a long-term supplier last week.
The source confirmed the strong magnesium ingot market but worried about a sudden turn-back as many magnesium ingot and powder producers and titanium producers have reduced or even halted production due to the price hike of magnesium ingot. Meanwhile, the export market also keeps slack as many foreign buyers are holding back from purchasing.
Most smelters in major producing areas such as Shanxi, Shaanxi and Ningxia started quoting RMB29,500-30,000/t (USD4,008-4,076/t) ex works in the middle of last week, almost RMB1,000/t (USD136/t) higher than the quotations at the beginning of the week. Some smelters who sold materials at around RMB28,000/t (USD3,804/t) ex works early last week reported deals at RMB29,000/t ex works for even higher prices on Thursday and Friday.
A Shanxi-based producer, running at its capacity of 10,000tpy, claimed that they would not sell at RMB29,500/t (USD4,008/t) ex works, predicting that the price will soon hit RMB30,000/t (USD4,076/t) ex works.
The source usually purchases coal from Linfen, Shanxi where all the coal mines were forced to close after the fatal accident early this month. “All the magnesium smelters in Yuncheng are scrambling for coal elsewhere as the coal supply will be tightening in the following one or two months when most mines will close during the Spring Festival,” said the source.
A trader from Shanxi confirmed that the market hiked again last week. The offers he received last Friday were around RMB29,500/t (USD4,008/t) ex works against RMB28,000/t (USD3,804/t) ex works at the beginning of last week. “I usually purchase from Wenxi and Yuncheng, but many smelters in the region raised offers greatly last week in the name of tight supply of coal,” said the source. However, the source managed to purchase 40-50t of magnesium ingot at around RMB28,500/t (USD3,872/t) ex works from a long-term supplier last week.
The source confirmed the strong magnesium ingot market but worried about a sudden turn-back as many magnesium ingot and powder producers and titanium producers have reduced or even halted production due to the price hike of magnesium ingot. Meanwhile, the export market also keeps slack as many foreign buyers are holding back from purchasing.
