Magnesium export market awaiting more business
2008-03-31 14:14:09 【Print】
BEIJING (Asian Metal) 31 Mar 08 - With magnesium prices moving up again early last week, Chinese suppliers expect higher export prices for the material. However, the export market has not yet warmed up, though a little more inquiries are seen in the market.
A Shanxi-based magnesium ingot producer reported that most of their product was sold in the domestic market due to weak demand from overseas market. "The current high price of magnesium ingot is out of overseas buyers' expectations. They are reluctant to buy as they believe the high price is a result of speculation from Chinese suppliers," said the source.
However, the source strongly believes that the export price will surge up pushed by the price increase in domestic market, arguing that many overseas buyers have been absent from the market for a long time and thus they have to buy to satisfy their need in the second and third quarter. The source increased the export offer to USD5,000/t FOB from previous USD4,850/t FOB in line with the rising price domestically, but has not concluded any deals yet. Meanwhile, the source reported that they concluded a small deal at around RMB29,600/t (USD4,223/t) ex works late last week. Running with an output of 400-500tpm based on its capacity of 10,000tpy, the smelter has signed a few contracts with April shipment without any stock on hand.
A trader from Henan reported that the export market has not warmed up, though more foreign buyers started inquiring after the Easter Holiday. Many buyers thought that the magnesium price would dropped, but to their disappointment, most Chinese suppliers raised export offers again after the Chinese domestic market bounced up a week ago.
The source, who put the export offer at USD5,100/t FOB, reported that no buyers showed interest in such an offer. "We do not doubt that some suppliers managed to conclude deals at USD5,100-5,200/t FOB, but the mainstream price is far away from that level. Actually, few export deals have been concluded in the past two weeks when the domestic market kept fluctuating. Nevertheless, the source also holds a positive attitude towards the market, thinking overseas buyers will have to accept the high price sooner or later when their stocks run low.
A Shanxi-based magnesium ingot producer reported that most of their product was sold in the domestic market due to weak demand from overseas market. "The current high price of magnesium ingot is out of overseas buyers' expectations. They are reluctant to buy as they believe the high price is a result of speculation from Chinese suppliers," said the source.
However, the source strongly believes that the export price will surge up pushed by the price increase in domestic market, arguing that many overseas buyers have been absent from the market for a long time and thus they have to buy to satisfy their need in the second and third quarter. The source increased the export offer to USD5,000/t FOB from previous USD4,850/t FOB in line with the rising price domestically, but has not concluded any deals yet. Meanwhile, the source reported that they concluded a small deal at around RMB29,600/t (USD4,223/t) ex works late last week. Running with an output of 400-500tpm based on its capacity of 10,000tpy, the smelter has signed a few contracts with April shipment without any stock on hand.
A trader from Henan reported that the export market has not warmed up, though more foreign buyers started inquiring after the Easter Holiday. Many buyers thought that the magnesium price would dropped, but to their disappointment, most Chinese suppliers raised export offers again after the Chinese domestic market bounced up a week ago.
The source, who put the export offer at USD5,100/t FOB, reported that no buyers showed interest in such an offer. "We do not doubt that some suppliers managed to conclude deals at USD5,100-5,200/t FOB, but the mainstream price is far away from that level. Actually, few export deals have been concluded in the past two weeks when the domestic market kept fluctuating. Nevertheless, the source also holds a positive attitude towards the market, thinking overseas buyers will have to accept the high price sooner or later when their stocks run low.
