Magnesium price to continue dropping
2008-01-11 13:38:59 【Print】
BEIJING (Asian Metal) 11 Jan 08 - Magnesium market continues dropping in China with some small smelters falling into panic sales. Market participants predict that the price will continue to move down in the following weeks before the Chinese Spring Festival, though the decreasing pace may be slower.
A magensium producer in Wenxi, Shanxi Province considered themselves lucky that they signed a bulk order of 400t at around RMB28,000/t (USD3,846/t) ex works at the beginning of this month. Running at its capacity of 5,000tpy, the smelter is focusing on fulfilling the contract without worrying about the rapid price decrease.
"The offer of RMB25,300-25,500/t (USD3,475-3,503/t) ex works for common magnesium ingot becomes more prevalent in the region, and many small smelters have begun selling at RMB25,000/t (USD3,434/t) ex works since yesterday for fear of further price decline," said the source. The source revealed that many smelters nearby have more materials in stock, which is likely to push them to lower prices further in the near future.
Another smelter in Shanxi, running with a monthly output of 700-800tpm, confirmed that the magnesium market has been in decline this week. "We sold a batch of magnesium ingot at RMB26,300/t (USD3,613/t) ex works early this week, but no deal has been concluded thereafter due to the slipping market," said the source. "We refused a bid of RMB25,000/t (USD3,434/t) ex works yesterday but fear that we will have to accept such a price soon."
The source also learnt that some small smelters, who are eager to empty stocks, have started to sell at RMB25,500/t (USD3,503/t) ex works and some even accept the price as low as RMB25,000/t (USD3,434/t) ex works. According to the source, not only smelters are with more stocks on hand but some traders have considerable quantities of materials in stock. Additionally, many smelters usually empty stocks before the Spring Festival to collect money, so the market is likely to remain at a downward trend in the following weeks.
A magensium producer in Wenxi, Shanxi Province considered themselves lucky that they signed a bulk order of 400t at around RMB28,000/t (USD3,846/t) ex works at the beginning of this month. Running at its capacity of 5,000tpy, the smelter is focusing on fulfilling the contract without worrying about the rapid price decrease.
"The offer of RMB25,300-25,500/t (USD3,475-3,503/t) ex works for common magnesium ingot becomes more prevalent in the region, and many small smelters have begun selling at RMB25,000/t (USD3,434/t) ex works since yesterday for fear of further price decline," said the source. The source revealed that many smelters nearby have more materials in stock, which is likely to push them to lower prices further in the near future.
Another smelter in Shanxi, running with a monthly output of 700-800tpm, confirmed that the magnesium market has been in decline this week. "We sold a batch of magnesium ingot at RMB26,300/t (USD3,613/t) ex works early this week, but no deal has been concluded thereafter due to the slipping market," said the source. "We refused a bid of RMB25,000/t (USD3,434/t) ex works yesterday but fear that we will have to accept such a price soon."
The source also learnt that some small smelters, who are eager to empty stocks, have started to sell at RMB25,500/t (USD3,503/t) ex works and some even accept the price as low as RMB25,000/t (USD3,434/t) ex works. According to the source, not only smelters are with more stocks on hand but some traders have considerable quantities of materials in stock. Additionally, many smelters usually empty stocks before the Spring Festival to collect money, so the market is likely to remain at a downward trend in the following weeks.
