16 Oct 09 – The concluded price of magnesium ingot keeps comparatively stable. Producers, most of whom are running below their capacities, are fulfilling signed contracts without much material in stock. They expect the market to be clearer in the near future. Magnesium ingot price in Shaanxi and Shanxi still keeps on the level of RMB15,150-15,350/t (USD2,218-2,247/t) ex works and RMB15,400-15,600/t (USD2,254-2,284) ex works respectively.
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A Shanxi-based producer, who is operating at one third of its capacity of 1,500tpm, revealed that they have concluded some small deals and still keep a stock of 300-400t of magnesium ingot in hand. "We do hope the price can go up, so that we won't have to sell magnesium ingot with little profit," said the source.
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The source reported to Asian Metal that consumers still have the intention of buying magnesium ingot, but the demand is not strong enough to push up the price. "Because of the comparatively low cost, the offers from Shaanxi-based smelters are generally RMB200-300/t less than those from Shanxi-based ones," added the source.
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A Ningxia-based producer, whose output is nearly 1,000tpm now, disclosed that they finalized some contracts at RMB15,600/t (USD2,284/t) ex works after the long holiday. "With no stock in hand, we raise our offer to RMB15,700/t (USD2,299/t) ex works, although the concluded price will be a little lower. I think the market will improve to some extent," the source said.
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According to the source, some producers in Fugu also lift their offers of magnesium ingot to RMB15,400-15,500/t (USD2,254-2,269/t) ex works, and they do not accept prices below RMB15,200/t (USD2,225/t) ex works without acid treatment and package. "The magnesium ingot market seems to be a little better, but I am still not sure until now. We are looking forward to a clear trend as soon as possible," added the source.
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