Fears seize magnesium market

BEIJING (Asian Metal) 17 Oct 06 - Report said fear of magnesium price sliding has hit Chinese suppliers like a live arrow as demand scaled down, prompting some suppliers to reduce price to be able to push out material, signaling a cooling market that has touched USD2,060-2,100/t in Rotterdam warehouse.

It seems consumers will be congratulating themselves for their effort to bring suppliers into the reality of the market price, which some European participants tag at the level of around USD2,100-2,140/t CIF Rotterdam. Though the price of USD2,100-2,140/t CIF Rotterdam is still high judging from what consumers will like to buy, some participants believe they will be able to consider it.Asian Metal Copyright"The price of USD2,100-2,140t CIF Rotterdam is acceptable," added the source who has decided to put a brake to all his dealings on magnesium till the price improves.Asian Metal Copyright

"We are not going to buy magnesium as quotations we got last week is unbelievably high," said a European trader. " We are now discussing with our customers because we prefer to wait than buying at this high price."

The source told Asian Metal they got quotation last week Friday at around USD2,250-2,300/t CIF Rotterdam which is higher than their expectation, and he professed participants will have to wait to see the price crash.

"The price of USD2,100-2,140/t CIF Rotterdam is acceptable," added the source who has decided to put a brake to all his dealings on magnesium till the price improves.

Meanwhile, analysts said joint effort by consumers, both in domestic and international market, might take a terrible toll on the market and bring the price back to ten months low if suppliers are not careful in handling the price.