Magnesium alloy producers marking down the price
2012-05-08 08:51:40 [Print]
BEIJING (Asian Metal) 8 May 12 – The producing areas of magnesium alloy witness a price decrease by RMB100/t (USD16/t) ex works in the wake of that in magnesium ingot today. However, gliding to RMB19,200-19,400/t (USD3,055-3,086/t) ex works now, the current quotes keep failing to invite many orders.
A Shanxi magnesium alloy smelter with an average output of 7,000tpm disclosed to Asian Metal that his business cannot stand comparison with that in the same period last month when his goods were almost packed with orders beforehand. Now the price has dropped to RMB19,200-19,400/t (USD3,055-3,086/t) ex works ensuing the price decline in magnesium ingot, still few purchasers feel enthusiasm about it.
“Buyers want to see how low the price can drop,” pointed the smelter, who contended that the downward price trend of magnesium ingot is bound to result in an increasingly wait-and-see attitude of downstream magnesium alloy consumers. “To this day, I’ve only received several orders,” confided the source, positive that consumers will not re-enter the market until the price approaches steadiness.
A second Shanxi magnesium alloy producer, who brings out 4,000tpt on the average, also admitted reaching merely several agreements with consumers both from home and abroad. He estimated that his sales performance will fall into a decline due to the frustrating global economy on the one hand and the prevalent wait-and-see approach adopted by consumers on the other hand. He noted that the sales volume in the first week has slidden down by one half in contrast to the same period last month.
The first ten days of a month usually sees deals settled one after another, however, this month seems to be unique with few transactions consummated up till now. “Buyers have hoped for an even lower price since it began to fall last week,” recalled the source, adding that another price decrease by RMB100/t (USD16/t) ex works today is more likely to hold purchasers’ buying activities in leash. “Last week still saw the price at RMB19,400-19,600/t (USD3,086-3,118/t) ex works, but now it has gone down to RMB19,200-19,400/t (USD3,055-3,086/t) ex works,” told the producer, “but buyers don’t look that excited.” He was sure that they are lying in wait for the optimum opportunity for purchase when the price touches the bottom.
A Shanxi magnesium alloy smelter with an average output of 7,000tpm disclosed to Asian Metal that his business cannot stand comparison with that in the same period last month when his goods were almost packed with orders beforehand. Now the price has dropped to RMB19,200-19,400/t (USD3,055-3,086/t) ex works ensuing the price decline in magnesium ingot, still few purchasers feel enthusiasm about it.
“Buyers want to see how low the price can drop,” pointed the smelter, who contended that the downward price trend of magnesium ingot is bound to result in an increasingly wait-and-see attitude of downstream magnesium alloy consumers. “To this day, I’ve only received several orders,” confided the source, positive that consumers will not re-enter the market until the price approaches steadiness.
A second Shanxi magnesium alloy producer, who brings out 4,000tpt on the average, also admitted reaching merely several agreements with consumers both from home and abroad. He estimated that his sales performance will fall into a decline due to the frustrating global economy on the one hand and the prevalent wait-and-see approach adopted by consumers on the other hand. He noted that the sales volume in the first week has slidden down by one half in contrast to the same period last month.
The first ten days of a month usually sees deals settled one after another, however, this month seems to be unique with few transactions consummated up till now. “Buyers have hoped for an even lower price since it began to fall last week,” recalled the source, adding that another price decrease by RMB100/t (USD16/t) ex works today is more likely to hold purchasers’ buying activities in leash. “Last week still saw the price at RMB19,400-19,600/t (USD3,086-3,118/t) ex works, but now it has gone down to RMB19,200-19,400/t (USD3,055-3,086/t) ex works,” told the producer, “but buyers don’t look that excited.” He was sure that they are lying in wait for the optimum opportunity for purchase when the price touches the bottom.
Magnesium Alloy AM60B FOB China
Unit:USD/mt
China magnesium alloy producers' number MoM output increase statistics by month
Unit: pcs
