Quietness to continue in magnesium export market
2007-12-21 11:54:47 【Print】
BEIJING (Asian Metal) 21 Dec 07 – Magnesium export market has remained inactive in the past several weeks as the price kept skyrocketing. With most buyers in western countries leaving for Christmas and New Year holidays, the magnesium export market is expected to be quieter in the following two weeks.
A trader from East China, who usually exports 100-120tpm of magnesium ingot, reported no deal was concluded in the past two weeks. “Actually, we did not close any business at prices above USD3,900/t FOB,” the source revealed to Asian Metal. In accord with the offers by domestic smelters, the source quoted USD4,200/t FOB for December shipment, but none of the customers agreed to this offer.
“Some major smelters put the offer as high as USD4,300/t FOB and claimed deals at USD4,100-4,200/t FOB, but I dare say that the concluded quantities must be small and buyers who accept such high prices are bound to be anxious to replenish stocks,” said the source.
With western holidays coming, the source thinks that the export market will come to a halt, which will probably help cool down the domestic market soon.
A Shanxi-based trader, with an export volume of 600-700tpm, reported that the offer of USD4,200/t FOB aroused no response from foreign buyers. “The highest price for our concluded deal is USD4,000/t FOB for December shipment, and we have not sealed any contracts above this level,” said the source.
According to the source, consumers all over the world are resisting the high price by holding back. “Our customers from Europe, India, Japan and Korea all claimed that they prefer to wait for a while to see a clearer market,” the source stated.
The source also expressed the concern regarding tax imposition. Other than those who optimistically believe that the price will continue to go up once the export duty is imposed, the source opines that possible tax regulation will probably lead to a price decrease in the local market. Nevertheless, with most foreign buyers absent for holidays, the export market is expected to be quieter till early next month.
Meanwhile, another Shanxi-based trader, who mainly sells in the domestic market, felt that the market has stopped rising since yesterday. Some small smelters, who put their offers at as high as RMB30,000/t (USD4,076/t) ex works, would like to sell at RMB29,000-29,200/t (USD3,940-3,967/t) ex works for now
A trader from East China, who usually exports 100-120tpm of magnesium ingot, reported no deal was concluded in the past two weeks. “Actually, we did not close any business at prices above USD3,900/t FOB,” the source revealed to Asian Metal. In accord with the offers by domestic smelters, the source quoted USD4,200/t FOB for December shipment, but none of the customers agreed to this offer.
“Some major smelters put the offer as high as USD4,300/t FOB and claimed deals at USD4,100-4,200/t FOB, but I dare say that the concluded quantities must be small and buyers who accept such high prices are bound to be anxious to replenish stocks,” said the source.
With western holidays coming, the source thinks that the export market will come to a halt, which will probably help cool down the domestic market soon.
A Shanxi-based trader, with an export volume of 600-700tpm, reported that the offer of USD4,200/t FOB aroused no response from foreign buyers. “The highest price for our concluded deal is USD4,000/t FOB for December shipment, and we have not sealed any contracts above this level,” said the source.
According to the source, consumers all over the world are resisting the high price by holding back. “Our customers from Europe, India, Japan and Korea all claimed that they prefer to wait for a while to see a clearer market,” the source stated.
The source also expressed the concern regarding tax imposition. Other than those who optimistically believe that the price will continue to go up once the export duty is imposed, the source opines that possible tax regulation will probably lead to a price decrease in the local market. Nevertheless, with most foreign buyers absent for holidays, the export market is expected to be quieter till early next month.
Meanwhile, another Shanxi-based trader, who mainly sells in the domestic market, felt that the market has stopped rising since yesterday. Some small smelters, who put their offers at as high as RMB30,000/t (USD4,076/t) ex works, would like to sell at RMB29,000-29,200/t (USD3,940-3,967/t) ex works for now
