Chinese magnesium ingot prices decrease further
Chinese magnesium ingot market continued to witness limited buying activity in the beginning of this week and suppliers lowered their offers by another RMB50/t (USD8/t) to promote sales. Currently, the mainstream magnesium ingot prices decrease to RMB11,850-11,950/t (USD1,823-1,838/t) ex works in Shaanxi and RMB11,950-12,200/t (USD1,838-1,876/t) ex works in Shanxi, while some small plants even mark down offer to RMB11,800/t (USD1,815/t) ex works and RMB10,800/t (USD1,661/t) ex works with VAT excluded in Shaanxi. Buyers from domestic and overseas markets are still inactive to place orders, and insiders predict the prices are likely to go down further in the coming weeks.
A producer in Shaanxi claimed that current magnesium ingot market sees scarce transactions and he has just finalized some small orders so far this week. He noted that his quotation was RMB11,900/t (USD1,830/t) ex works one week ago without any deals concluded, and he marks down offer to RMB11,800/t (USD1,815/t) ex works for the moment to run down stocks. “A regular consumer just purchased 120 tons of the materials at RMB11, 800/t (USD1, 815/t) ex works this Monday, and he is reluctant to buy more for fear of price decline continually,” said the source, thinking downward price trend will restrain buyers’ purchasing plan.
The producer, whose annual production capacity of magnesium ingot is about 30,000 tons, produced 2,300 tons in January and predicted to hold stable production volume in February, holding 800 tons of stocks on hand.
A magnesium ingot trader in North China stated that he booked 40 tons of the material at RMB10, 800/t (USD1, 661/t) ex works in Shaanxi this week on rigid demand, about RMB150/t (USD23/t) lower than last week. “The supply is very plenty now and suppliers are anxious to run down stocks to recoup funds back,” said the source, while downstream users in domestic market just make replenishments in minimal volume.
With an annual trading volume of 6,000t, the magnesium ingot trader sold about 600 tons in January and 350 tons in February, having no stocks on hand for the moment. “Price is still falling down, and we are reluctant to add any stocks on hand,” said the source, who is inclined to hold hand-to-mouth purchasing style to guarantee the basic requirements from buyers in the coming month.
Restructuring work of China Northern Rare Earth Group approved.
