Russian magnesium market rockets
2008-05-27 11:20:42 【Print】
BEIJING (Asian Metal) 27 May 08 - Russian magnesium market climbs with price rocketing continuously. Participants confirmed the concluded price is up to RUB160/kg (USD6,750/t) d.p. this week, up from RUB150/kg (USD6,330/t) d.p. of early last week.
A Russian consumer purchased 10t of magnesium ingot at RUB165/kg (USD6,962/t) d.p. last weekend. The source said some suppliers have few stockpiles so it is difficult for them to purchase material in the spot market. Meanwhile, producers with inadequate stockpiles insist on raising offers, which causes Russian magnesium price to increase continuously.
The source said magnesium consumers from die-casting sectors will use other material as substitute if the magnesium price keeps rising.
The source revealed that two major magnesium producers with an output of over 15,000tpy often sign long-term contracts with their clients, seldom supplying material to the spot market. The situation of magnesium price rising unreasonably brings new chances to the producers.
The source added that the offer he received from a Russian magnesium ingot producer this week is as high as RUB170/kg (USD7,173/t). “We are unwilling to accept the price rising but we have no choice but to purchase material in the spot market,” the source said.
A Russian trader concluded a small deal of magnesium ingot lat weekend. The source said, “Early last week we concluded a deal of 10t of magnesium ingot at RUB150/kg (USD6,330/t) and late last week we sold last 5t of magnesium ingot at RUB160/kg (USD6,750/t) d.p. ” Having no material at hand, the source prefers to watch the market as the situation of price rising impairs his judgment towards market.
The source believes Russian magnesium price is likely to go up further till consumers finish purchasing material for next quarter’s production.
