Magnesium quotations rise sharply
2008-03-04 09:12:41 【Print】
BEIJING (Asian Metal) 4 Mar 08 - Quotations of magnesium ingot suddenly rose early this week to around RMB27,000/t (USD3,803/t) ex works whereas the concluded price was in a range of RMB25,000-25,500/t (USD3,521-3,592/t) ex works last week. Many producers attribute the dramatic price increase to tightening supply against slowly increasing demand from both China and overseas market.
A Shanxi-based producer raised the offer to RMB27,000/t (USD3,803/t) ex works yesterday for common magnesium ingot but has not concluded any deals at the increased price. "Our concluded price was only around RMB25,300/t (USD3,563/t) ex works early last week and we sold small quantities of the material at RMB25,500/t (USD3,592/t) ex works last Friday," said the source.
The source reported that more inquiries are coming from both Chinese consumers and overseas buyers, and that is why they decide to lift the price. Additionally, the source revealed that the price of FeSi has risen to RMB6,200-6,300/t (USD873-887/t) delivered, RMB200-300/t (USD28-42/t) higher than that two weeks ago. Consequently, the production cost of magnesium ingot increases.
The smelter is running fully at its capacity of 10,000tpy and has sold nearly half of the Mar-output.
Another Shanxi-based smelter also increased their quotation of magnesium ingot to RMB27,000/t (USD3,803/t) ex works yesterday from RMB25,500/t (USD3,803/t) ex works seen last week and claimed that they sold small quantities of the material at such a price. "We received several inquiries from magnesium powder and alloy sectors, indicating that demand is strengthening," said the source.
The source revealed that the coal supply in South Shanxi keeps tight as many coal mines in Shanxi's Linfen and Hejin, two major coal producing areas, are out of production due to safety and environmental concerns. With great difficulty getting coal, the smelter is running 2/3 of its capacity of 10,000tpy.
Meanwhile, a trader who also confirmed the price hike of magnesium ingot, disclosed that few deals have been concluded at the increased price. "Our purchase price early last week was below RMB25,000/t (USD3,521/t) ex works while the material is being offered as high as RMB27,000/t (USD3,803/t) ex works now. I don't think there are many consumers and traders who can easily accept the price jump," said the source. However, the source acknowledged that the market supply seems to be tighter. "It's hard to purchase over 100t of the material from one smelter at a time," he added. Despite the unwillingness to accept higher prices, the source still thinks that the market will continue to go up in the short term judging from current situation.
A Shanxi-based producer raised the offer to RMB27,000/t (USD3,803/t) ex works yesterday for common magnesium ingot but has not concluded any deals at the increased price. "Our concluded price was only around RMB25,300/t (USD3,563/t) ex works early last week and we sold small quantities of the material at RMB25,500/t (USD3,592/t) ex works last Friday," said the source.
The source reported that more inquiries are coming from both Chinese consumers and overseas buyers, and that is why they decide to lift the price. Additionally, the source revealed that the price of FeSi has risen to RMB6,200-6,300/t (USD873-887/t) delivered, RMB200-300/t (USD28-42/t) higher than that two weeks ago. Consequently, the production cost of magnesium ingot increases.
The smelter is running fully at its capacity of 10,000tpy and has sold nearly half of the Mar-output.
Another Shanxi-based smelter also increased their quotation of magnesium ingot to RMB27,000/t (USD3,803/t) ex works yesterday from RMB25,500/t (USD3,803/t) ex works seen last week and claimed that they sold small quantities of the material at such a price. "We received several inquiries from magnesium powder and alloy sectors, indicating that demand is strengthening," said the source.
The source revealed that the coal supply in South Shanxi keeps tight as many coal mines in Shanxi's Linfen and Hejin, two major coal producing areas, are out of production due to safety and environmental concerns. With great difficulty getting coal, the smelter is running 2/3 of its capacity of 10,000tpy.
Meanwhile, a trader who also confirmed the price hike of magnesium ingot, disclosed that few deals have been concluded at the increased price. "Our purchase price early last week was below RMB25,000/t (USD3,521/t) ex works while the material is being offered as high as RMB27,000/t (USD3,803/t) ex works now. I don't think there are many consumers and traders who can easily accept the price jump," said the source. However, the source acknowledged that the market supply seems to be tighter. "It's hard to purchase over 100t of the material from one smelter at a time," he added. Despite the unwillingness to accept higher prices, the source still thinks that the market will continue to go up in the short term judging from current situation.
