Magnesium Market Report May 2011

Magnesium ingot prices in May ushered the first decline of this year.Asian Metal Copyright Since the beginning of the year, the supply of magnesium ingot in spot market tightened continually with the reduced production, and the balances of supply and demand has been broken, which made magnesium ingots prices pick up.Asian Metal Copyright Since the beginning of the year, the supply of magnesium ingot in spot market tightened continually with the reduced production, and the balances of supply and demand has been broken, which made magnesium ingots prices pick up. The average price of magnesium ingot rose from RMB17,000/t in early March to RMB18,000/t ex works in late April, increasing by RMB 1,000/t within one month.Asian Metal Copyright However, after the Development and Reform Commission issued to raise non-civil electricity price in Shanxi, Qinghai, Gansu and other 12 provinces on June 1, the ferrosilicon price started to pick up, and followed the magnesium ingot prices.Asian Metal Copyright As sales have been affected by the continual high price of magnesium ingot, there are few concluded deals in magnesium ingot market. After a short-term stability in early May, the magnesium ingot price has decreased by about RMB600/t, and at the end of May appeared a steady situation.Asian Metal CopyrightMagnesium ingot prices in May ushered the first decline of this year.Asian Metal Copyright However, after the Development and Reform Commission issued to raise non-civil electricity price in Shanxi, Qinghai, Gansu and other 12 provinces on June 1, the ferrosilicon price started to pick up, and followed the magnesium ingot prices.Asian Metal CopyrightMagnesium ingot prices in May ushered the first decline of this year.Asian Metal Copyright