BEIJING (Asian Metal) 4 Jun 08—Russian traders continue to raise offers of magnesium ingot with magnesium market keeps rocketing. Participants told Asian Metal that the offer reaches RUB180-185/kg (USD7,563-7,773/t) this week, up by the concluded price of RUB15/kg (USD630/t) last week.

participants said that some consumers came back to the market to purchase late last week and the spot market becomes a little active as more deals are concluded. In addtion, many traders are not sure of the future market trend and watch the market, leading to the supply decrease. Therefore, traders insist on raising offers due to tight supply

a Russian trader sold five tons of magnesium ingot at RUB175/kg (USD7,353/t) d.d.p. last week and they offer RUB190/kg (USD7,983/t) now. "We have not concluded any deal this week because many consumers are unwilling to purchase at this price yet, watching the market," said the source.
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The source believes magnesium price will go up further due to inadequate stockpiles and tight supply. The source said consumers will accept the price of RUB190/kg (USD7,983/t) in a short time.
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Another trader in Russia said, "Magnesium price is around RUB180-190/kg (USD7,563-7,983/t) and the concluded price was around RUB170/kg (USD7,143/t) last week." The source added that Chinese magnesium price influences European magnesium price, and the price in Russia follows the trend in Europe. Therefore the price will go up further with Olympic Games approaching, but it may drop drastically after that.