Magnesium prices drops

BEIJING (Asian Metal) 24 Mar 08 - Triggered by some speculators' underselling, the magnesium ingot market saw a great decrease late last week. Most smelters in Shanxi lowered their offers to RMB28,700-29,000/t (USD4,065-4,108/t) ex works with a few deals concluded at RMB28,500-28,800/t (USD4,037-4,079/t) ex works.Asian Metal Copyright Therefore, those who have stocks on hand were anxious to sell for fear that the market might drop further," added the source.Asian Metal Copyright

"Spot magnesium market weakens on panic sales. For fear that the market would drop further, some smelters and dealers who have stocks on hand did their utmost to empty stocks last week," a Shanxi-based producer reported to Asian Metal, adding that the most apparent price decrease was found in Shanxi's Yuncheng city last Friday, where the price rose the fastest early this month.

The source concluded a deal at RMB29,200/t (USD4,136/t) ex works early last week and no deal was closed thereafter. According to the source, many smelters in Shanxi reduced offers to levels below RMB29,000/t (USD4,108/t) ex works and a few deals were reportedly concluded at around RMB28,500/t (USD4,037/t) ex works.Asian Metal Copyright According to a trader from Shanxi, concluded prices dropped to RMB28,500-28,800t USD4,037-4,079t last Friday owing mainly to the fact that many speculators were trying to liquidate stock out of panic.Asian Metal Copyright Running with an output of around 1,500tpm, the smelter dares not sign long-term contracts as the market is so volatile.

According to a trader from Shanxi, concluded prices dropped to RMB28,500-28,800/t (USD4,037-4,079/t) last Friday owing mainly to the fact that many speculators were trying to liquidate stock out of panic.

Most producers hold that the market would not drop much as coal supply keeps tight and the anti-pollution control will be stricter before 2008 Olympic Games, which may affect the magnesium production. "However, consumers have been sitting on sidelines and watching the market to touch the floor since early last week.Asian Metal CopyrightMost producers hold that the market would not drop much as coal supply keeps tight and the anti-pollution control will be stricter before 2008 Olympic Games, which may affect the magnesium production.Asian Metal Copyright Therefore, those who have stocks on hand were anxious to sell for fear that the market might drop further," added the source.

Meanwhile, the market in Shaanxi and Ningxia did not see a significant price decrease last Friday where smelters still concluded deals at RMB28,800-29,200/t (USD4,079-4,136/t) ex works, but sources predict that the downward trend will soon spread to other production bases from Shanxi.