Magnesium alloy producers intending for no further price reduction

BEIJING (Asian Metal) 22 Oct 12 – Despite a present price decline in magnesium alloy by RMB100/t (USD16/t) ex works last week resulting from the continuous price drop in magnesium ingot, magnesium alloy producers intend to keep the price stablised for the time being in the light of a subtle rebound of domestic requirement, positive that a higher price than RMB19,900-20,200/t (USD3,156-3,204/t) ex works should gain popularity among consumers with the magnesium alloy market heading upward.

A Shanxi magnesium alloy producer with a monthly output of 6,000t claimed that the price reduction in magnesium alloy last week is transitory which shall be supplanted by a higher price very soon. “I marked it down by RMB100/t (USD16/t) ex works to RMB19,900-20,100/t (USD3,156-3,188/t) ex works because magnesium ingot gets cheaper,” explained the source, foretelling an upward magnesium alloy market in the upcoming two months with domestic 3C industries usually burgeoning in the second half of a year.

“It’s as plain as the nose on my face that buyers from home and abroad are more active now than before,” commented the producer, who has been preoccupied with export since two month before. In addition, he stated that domestic consumers from 3C industries are growing more enthusiastic about magnesium alloy procurement currently. “I sell at USD3,530-3,600/t FOB China with my foreign clients and accept bargains at RMB19,900-20,100/t (USD3,156-3,188/t) ex works at home,” revealed he, confident that the climbing demand for alloy rather than the magnesium ingot market will gradually exert a more powerful influence on the price of magnesium alloy.

His local counterpart with an output of 1,200tpm makes no determination to lower the price of magnesium alloy at this moment in view of a prospective market in the near future. He interpreted the reason that both domestic and foreign demand keeps mounting that is bound to drive up the price eventually. “I’ve not altered the price since I brought it down by RMB100/t (USD16/t) ex works,” remarked the source, who once came to terms at RMB20,000-20,300/t (USD3,172-3,220/t) ex works with domestic consumers.

“Magnesium ingot costs me no higher than RMB17,800/t (USD2,823/t) ex works now, RMB100/t (USD16/t) ex works lower than one week ago,” explained the source, “so I gave in to a lower price.” Nevertheless, he considers no further price decrease in magnesium alloy with his domestic customers frequenting him for the price recently.
.Asian Metal CopyrightBEIJING Asian Metal 22 Oct 12 – Despite a present price decline in magnesium alloy by RMB100t USD16t ex works last week resulting from the continuous price drop in magnesium ingot, magnesium alloy producers intend to keep the price stablised for the time being in the light of a subtle rebound of domestic requirement, positive that a higher price than RMB19,900-20,200t USD3,156-3,204t ex works should gain popularity among consumers with the magnesium alloy market heading upwardAsian Metal Copyright