Deals sporadic in magnesium alloy market
2012-08-22 08:47:51 [Print]
BEIJING (Asian Metal) 22 Aug 12 – The magnesium alloy export market has recently seen subtle warm-up of requirement while its domestic counterpart proceeds to witness sporadic deals settled. Now RMB19,900-20,200/t (USD3,138-3,185/t) ex works stays popular in the mainstream market with the price of magnesium ingot momentarily unvaried.
A Shanxi magnesium alloy smelter with a monthly output of 600t disclosed to Asian Metal that activity of exporters and foreign consumers starts to show in the export market with their enquiries on the rise. Make no foreign deals as he would, he noticed that foreign utilisers grow increasingly more enthusiastic about inventory replenishment day by day. “I think they are in urgent need now after standing by for long,” judged the source.
As regards the domestic market, he was positive that transaction goes sporadic yet stable with a 60-ton deal on hand. “We come to terms on RMB20,000/t (USD3,154/t) ex works,” revealed the source, adding that it is normal to conclude merely small deals with domestic customers with the universal economy on the decline. In his opinion, the dreary downstream business proves to be the crucial stumbling stone to the rapid movement of the domestic magnesium alloy market. “Luckily my business carries on all right with buyers at home although they buy a petty amount at a time,” confided the smelter.
A second Shanxi producer, who brings out average 500t of magnesium alloy every month, echoed his statement that the domestic market moves on with sporadic slender transactions consummated. With a 20-ton deal at hand, he bought one container of magnesium ingot at RMB17,900/t (USD2,823/t) ex works yesterday for the sake of timely supply of magnesium alloy. “My customer agrees on RMB20,100/t (USD3,169/t) ex works with me,” revealed the source.
“I make no change to the price since that of magnesium ingot stays stable now,” explained the producer, aware of the price stability of magnesium ingot since last Wednesday. In addition, the general conditions are still far from satisfying despite the exciting rebound of downstream demand in the export market, which should be a critical reason for the price steadiness of magnesium alloy. “I’d make no money without the support of my clients at home,” confided he.
A Shanxi magnesium alloy smelter with a monthly output of 600t disclosed to Asian Metal that activity of exporters and foreign consumers starts to show in the export market with their enquiries on the rise. Make no foreign deals as he would, he noticed that foreign utilisers grow increasingly more enthusiastic about inventory replenishment day by day. “I think they are in urgent need now after standing by for long,” judged the source.
As regards the domestic market, he was positive that transaction goes sporadic yet stable with a 60-ton deal on hand. “We come to terms on RMB20,000/t (USD3,154/t) ex works,” revealed the source, adding that it is normal to conclude merely small deals with domestic customers with the universal economy on the decline. In his opinion, the dreary downstream business proves to be the crucial stumbling stone to the rapid movement of the domestic magnesium alloy market. “Luckily my business carries on all right with buyers at home although they buy a petty amount at a time,” confided the smelter.
A second Shanxi producer, who brings out average 500t of magnesium alloy every month, echoed his statement that the domestic market moves on with sporadic slender transactions consummated. With a 20-ton deal at hand, he bought one container of magnesium ingot at RMB17,900/t (USD2,823/t) ex works yesterday for the sake of timely supply of magnesium alloy. “My customer agrees on RMB20,100/t (USD3,169/t) ex works with me,” revealed the source.
“I make no change to the price since that of magnesium ingot stays stable now,” explained the producer, aware of the price stability of magnesium ingot since last Wednesday. In addition, the general conditions are still far from satisfying despite the exciting rebound of downstream demand in the export market, which should be a critical reason for the price steadiness of magnesium alloy. “I’d make no money without the support of my clients at home,” confided he.
Magnesium Alloy AM60B FOB China
Unit:USD/mt
China magnesium alloy producers' number MoM output increase statistics by month
Unit: pcs
