Magnesium powder producers grousing on thin transactions
2012-07-03 09:11:01 [Print]
BEIJING (Asian Metal) 3 Jul 12 – With the summer break creeping on and the European economy going downhill continuously, magnesium powder producers start encountering a more formidable commercial hardship than before. With RMB18,400-18,600/t (USD2,914-2,946/t) ex works replacing RMB18,300-18,500/t (USD2,898-2,930/t) ex works as the novel offer, it seems more prevalent in domestic consumers than among foreign utilisers.
A Liaoning magnesium powder smelter with a monthly output of 700t shared with Asian Metal that his business is carrying on smooth comparatively under the circumstances of the present demand listlessness. He revealed that RMB18,400-18,600/t (USD2,914-2,946/t) ex works has been acknowledged by domestic consumers whose requirement has become stably sluggish since the overproduction of steel products. “The demand has weakened a lot compared with before,” remarked the producer, “but it looks better than the foreign demand.”
He interpreted the cause that increasingly fewer consumers are enthusiastic about further procurement with European economy taking a worse turn despite the approaching of the summer break. “I’m able to sell dozens of tons at RMB18,600/t (USD2,946/t) ex works and hundreds of tons at RMB18,400/t (USD2,914/t) ex works,” told the smelter, continuing that multitudinous magnesium powder exporters have tremendous difficulty with sales at even RMB18,400/t (USD2,914/t) ex works.
His Henan counterpart, who yields average 600t every month, admitted coming to terms with sales difficulty owing to the economic downturn in European countries. “We mainly face European consumers, whose demand was usually good,” recalled the source, “and I could sell hundreds of tons at a time when Q3 drew on.” However, his business starts to fall into a decline under the influence of the shrinking demand overseas in the shadow of European economic recession.
“We’re hardly able to strike a new deal,” said the producer, explaining that plentiful of goods are streaming abroad in accordance with the previous orders that his consumers placed in May and June. “On hearing the price rise, they all turn very discontented,” disclosed the source, who has to compromise over RMB18,300/t (USD2,898/t) ex works on a bid deal and RMB18,400/t (USD2,914/t) ex works on a petty one by comparison.
A Liaoning magnesium powder smelter with a monthly output of 700t shared with Asian Metal that his business is carrying on smooth comparatively under the circumstances of the present demand listlessness. He revealed that RMB18,400-18,600/t (USD2,914-2,946/t) ex works has been acknowledged by domestic consumers whose requirement has become stably sluggish since the overproduction of steel products. “The demand has weakened a lot compared with before,” remarked the producer, “but it looks better than the foreign demand.”
He interpreted the cause that increasingly fewer consumers are enthusiastic about further procurement with European economy taking a worse turn despite the approaching of the summer break. “I’m able to sell dozens of tons at RMB18,600/t (USD2,946/t) ex works and hundreds of tons at RMB18,400/t (USD2,914/t) ex works,” told the smelter, continuing that multitudinous magnesium powder exporters have tremendous difficulty with sales at even RMB18,400/t (USD2,914/t) ex works.
His Henan counterpart, who yields average 600t every month, admitted coming to terms with sales difficulty owing to the economic downturn in European countries. “We mainly face European consumers, whose demand was usually good,” recalled the source, “and I could sell hundreds of tons at a time when Q3 drew on.” However, his business starts to fall into a decline under the influence of the shrinking demand overseas in the shadow of European economic recession.
“We’re hardly able to strike a new deal,” said the producer, explaining that plentiful of goods are streaming abroad in accordance with the previous orders that his consumers placed in May and June. “On hearing the price rise, they all turn very discontented,” disclosed the source, who has to compromise over RMB18,300/t (USD2,898/t) ex works on a bid deal and RMB18,400/t (USD2,914/t) ex works on a petty one by comparison.
Magnesium Powder 99.9%min EXW China
Unit:RMB/mt
China magnesium powder producers' inventory statistics by province by month
Unit: mt
