Magnesium market in decline
2006-11-16 10:15:02 【Print】
BEIJING (Asian Metal) 16 Nov 06 – The magnesium price in domestic market continues to slide down with concluded price dropping below RMB15,000/t(USD1,906/t) ex works, market sources reported to Asian Metal.
A Shanxi-based producer reported that the mainstream price has fallen to RMB14,900-15,000/t(USD1,893-1,906/t) ex works from RMB15,100-15,200/t(USD1,919-1,931/t) ex works seen the previous week.
“Suppliers can still get RMB14,900-15,000/t(USD1,893-1,906/t) ex works for materials with high quality, but some small smelters are conducting panic sales that pushes the price down further,” said the source.
The smelter is fully running at its capacity of 10,000tpy, but is under great pressure of distributing.
Another producer from Shanxi also reported lower concluded prices this week, adding that the domestic market is in danger of declining further as many smelters are in a rush to sell so as to minimize risks.
“Other than small-to-mid sized smelters, those major smelters are also likely to undersell materials due to their large production capacity,” said the source. “In that case, the market condition will continue to worsen.”
Despite that some large smelters still hold high offers of around RMB15,200-15,300/t(USD1,931-1,944/t) ex works, many others are selling at around RMB14,900-15,000/t(USD1,893-1,906/t) ex works currently. Meanwhile, lower prices such as RMB14,700-14,800/t(USD1,869-1,880/t) ex works are also showing up in the market.
A Shanxi-based producer reported that the mainstream price has fallen to RMB14,900-15,000/t(USD1,893-1,906/t) ex works from RMB15,100-15,200/t(USD1,919-1,931/t) ex works seen the previous week.
“Suppliers can still get RMB14,900-15,000/t(USD1,893-1,906/t) ex works for materials with high quality, but some small smelters are conducting panic sales that pushes the price down further,” said the source.
The smelter is fully running at its capacity of 10,000tpy, but is under great pressure of distributing.
Another producer from Shanxi also reported lower concluded prices this week, adding that the domestic market is in danger of declining further as many smelters are in a rush to sell so as to minimize risks.
“Other than small-to-mid sized smelters, those major smelters are also likely to undersell materials due to their large production capacity,” said the source. “In that case, the market condition will continue to worsen.”
Despite that some large smelters still hold high offers of around RMB15,200-15,300/t(USD1,931-1,944/t) ex works, many others are selling at around RMB14,900-15,000/t(USD1,893-1,906/t) ex works currently. Meanwhile, lower prices such as RMB14,700-14,800/t(USD1,869-1,880/t) ex works are also showing up in the market.
