Magnesium price under pressure in Europe
2006-04-24 10:13:58 【Print】
BEIJING (Asian Metal) 24 Apr 06 - Magnesium has gone through another way as the price of Chinese suppliers started to head down leaving European price under the pressure of dipping although the price still keep stable at around USD1,900-1,940/t at Rotterdam warehouse.
To many participants the sliding price of magnesium is not a puzzle because they didn't see any reason for the price increase when demand did not support it.
A trader who used to buy direct from China said the downward trend of the price is good for the market because very soon they will see the price stabilizing and the same time encouraging purchase from consumers.
"The realistic price for magnesium should be around USD1,700/t FOB," said the source. "And that is where the price is going to rest now."
The source said in Rotterdam warehouse there are a lot of inventories built up at the end of last year, which will keep consumers going for a while so he has known that the increasing price of Chinese magnesium will not last long.
Meanwhile, the weakening of dollars will continue to affect the market coupled with stable demand of magnesium that has not increase due to high price. However, the source whose price is around USD1,900-1.940/t in Rotterdam warehouse said the price decrease in the Chinese market has not reach European market yet.
"It will take next month to register in our prices and I guess that will be good for the market that has be limping for months."
