Magnesium export market inactive
2008-01-30 13:33:53 【Print】
BEIJING (Asian Metal) 30 Jan 08 - Few deals have been closed in magnesium export market during the past two weeks. Traffic chaos caused by heavy snow and also suppliers' attempt to raise offers are attributed to few activities in the market.
Considering many smelters reduced or halted production due to short supply of raw materials led by bad traffic, producers and traders raised export offers by USD100-200/t FOB from around USD3,800-3,850/t FOB China two weeks ago. However, overseas buyers, most of whom think the price increase will be temporary, prefer to hold back from purchasing till Chinese come back from their traditional holidays.
A Shanxi-based trader has suspended export business since last week. "It takes more time to convey goods from smelters to Tianjin ports due to unavailability of trucks and tight transportation," said the source. "Furthermore, buyers are not inactive in buying as they think the price will go down soon once the weather turns better."
The source who exports 600-700tpm of magnesium ingot increased the export offer to USD3,900/t FOB last week from previous USD3,800/t FOB in line with the price increase in domestic market, but did not get any responses from overseas buyers.
A Shanxi-based producer, running with an output of 500tpm, confirmed that the export market keeps dull. "The export deals we have concluded this month are scarce. Foreign buyers held on for lower prices early this month when the market was moving down, and they still take a watch and see attitude as they believe the price rise will not last long," said the source.
The source confirmed that many producers and traders lifted the export quotations to USD3,900-4,000/t FOB from USD3,750-3,850/t FOB two weeks ago when they learnt many smelters cut down output or stopped production. However, few concluded deals have been reported.
With the Chinese Spring Festival only a week ahead, there will be no time to arrange shipment for exports. Therefore, both sources believe that little business will be done this week.
Meanwhile, some consumers and traders from Southeast Asia reported that they received higher offers of USD4,000-4,100/t FOB from major magnesium producers in China, but they are not ready to accept such high offers.
Considering many smelters reduced or halted production due to short supply of raw materials led by bad traffic, producers and traders raised export offers by USD100-200/t FOB from around USD3,800-3,850/t FOB China two weeks ago. However, overseas buyers, most of whom think the price increase will be temporary, prefer to hold back from purchasing till Chinese come back from their traditional holidays.
A Shanxi-based trader has suspended export business since last week. "It takes more time to convey goods from smelters to Tianjin ports due to unavailability of trucks and tight transportation," said the source. "Furthermore, buyers are not inactive in buying as they think the price will go down soon once the weather turns better."
The source who exports 600-700tpm of magnesium ingot increased the export offer to USD3,900/t FOB last week from previous USD3,800/t FOB in line with the price increase in domestic market, but did not get any responses from overseas buyers.
A Shanxi-based producer, running with an output of 500tpm, confirmed that the export market keeps dull. "The export deals we have concluded this month are scarce. Foreign buyers held on for lower prices early this month when the market was moving down, and they still take a watch and see attitude as they believe the price rise will not last long," said the source.
The source confirmed that many producers and traders lifted the export quotations to USD3,900-4,000/t FOB from USD3,750-3,850/t FOB two weeks ago when they learnt many smelters cut down output or stopped production. However, few concluded deals have been reported.
With the Chinese Spring Festival only a week ahead, there will be no time to arrange shipment for exports. Therefore, both sources believe that little business will be done this week.
Meanwhile, some consumers and traders from Southeast Asia reported that they received higher offers of USD4,000-4,100/t FOB from major magnesium producers in China, but they are not ready to accept such high offers.
