Magnesium market drops sharply in China

BEIJING (Asian Metal) 10 Jan 08 - Magnesium ingot market saw a dramatic price decrease during the past three days with mainstream price plummeting from RMB26,500-26,800/t (USD3,645-3,686/t) ex works to RMB25,800-26,300/t (USD3,549-3,618/t) ex works. Furthermore, some smelters reportedly undersold materials at prices lower than RMB25,700/t (USD/t) ex works for fear that the market may keep falling, market sources reported to Asian Metal today.

A Shanxi-based trader reported that most small to medium-sized smelters in Wenxi, Shanxi Province quoted around RMB26,000-26,300/t (USD3,576-3,618/t) ex works yesterday, but few buyers would like to purchase as they firmly believe that the price will go down further. "Actually, some smelters made firm offers of RMB25,600/t (USD3,521/t) ex works yesterday afternoon, but we did not have any intention of buying at the moment," said the source.

Exporting 400-500tpm of magnesium ingot, the source concluded a small deal at a price a little higher than USD4,300/t FOB early this week but found it hard to persuade buyers to accept such a price any more.

A Shanxi-based smelter who quoted RMB26,300/t (USD3,618/t) ex works yesterday reported no deal concluded. "Some consumers' counter bids are as low as RMB25,000/t (USD3,439/t) ex works, but we cannot accept such a price now," said the source.Asian Metal Copyright "Actually, some smelters made firm offers of RMB25,600t USD3,521t ex works yesterday afternoon, but we did not have any intention of buying at the moment," said the source.Asian Metal Copyright However, seeing more materials in stock, the source worries that the mainstream price will soon drop to the low level soon as more smeters begin making panic sales.Asian Metal CopyrightBEIJING Asian Metal 10 Jan 08 - Magnesium ingot market saw a dramatic price decrease during the past three days with mainstream price plummeting from RMB26,500-26,800t USD3,645-3,686t ex works to RMB25,800-26,300t USD3,549-3,618t ex works.Asian Metal Copyright

The smelters is running with a monthly output of around 500t and holds 100-200t of stocks on hand.

A consumer from Northeast China, who bought a cargo of mangesium ingot at around RMB25,700/t (USD3,535/t) ex works from a Yuncheng-based smelter on Tuesday, reported that more smelters have started making unsolicited offers below RMB26,000/t (USD3,576/t) ex works since yesterday.

Meanwhile, some major smelters in Ningxia, Shanxi's Taiyuan and Wenxi, with capacity of more than 30,000tpy, still insist on offers at or above RMB29,000/t (USD3,989/t) ex works as most of their Jan-output has been ordered in advance. However, with the gap between their quotations and the concluded prices in the spot market widening, those smelters will be forced to adjust their prices down before long.Asian Metal CopyrightBEIJING Asian Metal 10 Jan 08 - Magnesium ingot market saw a dramatic price decrease during the past three days with mainstream price plummeting from RMB26,500-26,800t USD3,645-3,686t ex works to RMB25,800-26,300t USD3,549-3,618t ex works.Asian Metal Copyright

.Asian Metal Copyright A Shanxi-based smelter who quoted RMB26,300t USD3,618t ex works yesterday reported no deal concludedAsian Metal Copyright