Magnesium export market awaiting more activities
2008-01-14 13:36:49 【Print】
BEIJING (Asian Metal) 14 Jan 07 - As magnesium prices dropped dramatically in Chinese local market recently, foreign consumers and traders have begun watching the market without making purchase. However, participants believe that more activities will emerge in the export market as buyers are likely to replenish stocks before Chinese leave for their traditional Spring Festival holiday.
A Shanxi-based trader with export volume of around 500tpm reported that they have received many inquiries from foreign buyers including traders and end-users since early last week when most westerners have returned from their holidays. "Although most of them are testing the market after they come back from a long holiday, I think they will soon begin purchasing stimulated by the sharp price decrease. Furthermore, the upcoming Chinese Spring Festival will also prevent them from holding off for long," said the source.
The source quoted USD4,300/t FOB early last week but received no reply from foreign buyers. Considering that the domestic price has declined to RMB25,000-25,500/t (USD3,439-3,508/t) ex works, the source plans to lower export offers to USD4,100-4,150/t FOB Chinese main ports.
A Shanxi-based producer, who concluded a small deal of one container at USD4,250/t FOB early last week, confirmed that most foreign buyers are watching the market and holding off for better prices. "Although some foreign consumers are running out of stocks, they are still taking their time to test the price as they think there is still large room for the price to drop," said the source. However, the appoaching Spring Festival in China will urge buyers to resume purchasing before long. The source received a few inquiries last week, and a deal is expected to be concluded at around USD4,100/t FOB this week.
Running with a monthly output of 700-800tpm, the smelter sells less than half of its products abroad. Due to the sharp price increase last year, its export voloum shrank greatly in the last quarter.
Both sources firmly believe that the export market will see more deals concluded in the second half of January, though the concluded price will follow the trend in domestic sales.
A Shanxi-based trader with export volume of around 500tpm reported that they have received many inquiries from foreign buyers including traders and end-users since early last week when most westerners have returned from their holidays. "Although most of them are testing the market after they come back from a long holiday, I think they will soon begin purchasing stimulated by the sharp price decrease. Furthermore, the upcoming Chinese Spring Festival will also prevent them from holding off for long," said the source.
The source quoted USD4,300/t FOB early last week but received no reply from foreign buyers. Considering that the domestic price has declined to RMB25,000-25,500/t (USD3,439-3,508/t) ex works, the source plans to lower export offers to USD4,100-4,150/t FOB Chinese main ports.
A Shanxi-based producer, who concluded a small deal of one container at USD4,250/t FOB early last week, confirmed that most foreign buyers are watching the market and holding off for better prices. "Although some foreign consumers are running out of stocks, they are still taking their time to test the price as they think there is still large room for the price to drop," said the source. However, the appoaching Spring Festival in China will urge buyers to resume purchasing before long. The source received a few inquiries last week, and a deal is expected to be concluded at around USD4,100/t FOB this week.
Running with a monthly output of 700-800tpm, the smelter sells less than half of its products abroad. Due to the sharp price increase last year, its export voloum shrank greatly in the last quarter.
Both sources firmly believe that the export market will see more deals concluded in the second half of January, though the concluded price will follow the trend in domestic sales.
