Although Chinese smelters are trying their best to prevent the magnesium prices from falling further given the closures of smelters Yuncheng, Shanxi, and also the fact that some smelters are suffering loss, the domestic market still remains sluggish with concluded prices standing at a low level, market sources reported to Asian Metal today.
"We're offering at around RMB25,500/t (USD3,723/t) ex works for domestic sales, RMB500/t (USD73/t) lower than the our offer last week, but no buyer is showing up in the market," a Shanxi-based trader said, adding that little impact has been seen from the shutdown of smelters in Wenxi and other regions in South Shanxi.
The source usually sells about 300-400tpm of magnesium ingot to local consumers, but only sold 80t to a regular buyer at around RMB26,000/t (USD3,796/t) ex works late July. According to the source, it is still difficult to conduct sales domestically for the time being.
A Ningxia-based producer, running below its capacity of around 1,000tpm, also confirmed that the domestic market saw no improvement during the past week. "The export market remains dull, so does the domestic market," said the source, revealing that it is hard to stop the price from decreasing further when the market is experiencing low demand.
AThe source revealed that few inquiries and orders are seen in the market, and consumers show no interest in the price at or above RMB25,500/t (USD3,723/t) ex works.
Both sources are not optimistic about the market in August. They think that the market is still under great pressure despite that some smelters claimed that the current price is below their production cost, as the supply-demand relationship plays a dominant role in the market.
"We're offering at around RMB25,500/t (USD3,723/t) ex works for domestic sales, RMB500/t (USD73/t) lower than the our offer last week, but no buyer is showing up in the market," a Shanxi-based trader said, adding that little impact has been seen from the shutdown of smelters in Wenxi and other regions in South Shanxi.
The source usually sells about 300-400tpm of magnesium ingot to local consumers, but only sold 80t to a regular buyer at around RMB26,000/t (USD3,796/t) ex works late July. According to the source, it is still difficult to conduct sales domestically for the time being.
A Ningxia-based producer, running below its capacity of around 1,000tpm, also confirmed that the domestic market saw no improvement during the past week. "The export market remains dull, so does the domestic market," said the source, revealing that it is hard to stop the price from decreasing further when the market is experiencing low demand.
AThe source revealed that few inquiries and orders are seen in the market, and consumers show no interest in the price at or above RMB25,500/t (USD3,723/t) ex works.
Both sources are not optimistic about the market in August. They think that the market is still under great pressure despite that some smelters claimed that the current price is below their production cost, as the supply-demand relationship plays a dominant role in the market.
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