Indian magnesium buyers watch the market
2008-03-25 10:14:02 【Print】
BEIJING (Asian Metal) 25 Mar 08 - Indian magnesium buyers are inactive in purchasing in the face of the high prices offered by Chinese suppliers. As the price in Chinese domestic market dropped last week, Indian traders and consumers prefer to watch the market for a while before they take any steps.
An Indian trader reported that the recent offers of magnesium ingot received from Chinese suppliers were in a range of USD4,900-5,050/t CIF Nava Shava. "However, we're not ready to accept such high prices," said the source.
Importing about 200tpm of magnesium ingot from China, the source did not purchase magnesium ingot in the past week. Although demand from Indian local market keeps stable for the time being, consumers will be forced to leave the market if the price continues to rise. The source reported that the concluded price of the material is around INR225/kg in the local market.
Another Indian trader also takes a watch-and-see attitude towards the market as most consumers would not like to accept the offers of USD4,850-4,950/t FOB China. "We learnt that the Chinese domestic market fell a little last week, and demand from the international market is not so strong, so there's no reason that Chinese suppliers put their offers at such a high level," said the source.
The source revealed that many customers stopped buying the material after the price exceeded USD4,700/t FOB China and some reduced purchasing amount due to the high price. The source also hopes the market to cool down as soon as possible so that more business can be done. The source currently quotes INR230/kg for the material in the spot market but few deals have been concluded.
An Indian trader reported that the recent offers of magnesium ingot received from Chinese suppliers were in a range of USD4,900-5,050/t CIF Nava Shava. "However, we're not ready to accept such high prices," said the source.
Importing about 200tpm of magnesium ingot from China, the source did not purchase magnesium ingot in the past week. Although demand from Indian local market keeps stable for the time being, consumers will be forced to leave the market if the price continues to rise. The source reported that the concluded price of the material is around INR225/kg in the local market.
Another Indian trader also takes a watch-and-see attitude towards the market as most consumers would not like to accept the offers of USD4,850-4,950/t FOB China. "We learnt that the Chinese domestic market fell a little last week, and demand from the international market is not so strong, so there's no reason that Chinese suppliers put their offers at such a high level," said the source.
The source revealed that many customers stopped buying the material after the price exceeded USD4,700/t FOB China and some reduced purchasing amount due to the high price. The source also hopes the market to cool down as soon as possible so that more business can be done. The source currently quotes INR230/kg for the material in the spot market but few deals have been concluded.
