15 Jul 08 – Participants has shown a surprise of continuous downtrend of the magnesium price as it has come down more than they have had expected.

A European trader who bought few tons at around USD4,850/t CIF Rotterdam last week, said he can not understand why the price is going down to this level and he added, "If Chinese suppliers will at least accept this price of USD4,700/t FOB, that means it will still go down.

Actually, the magnesium market in Europe has been quiet even when the price was going up as there are more materials in the market and the rising price of Al is not helping the market much.

Meanwhile, a European trader said the market kicked off this week with a price of around USD5,100-5,200/t in Rotterdam warehouse but he can not confirm if material can actually be obtained at a price of USD4,700/t FOB China.

"Although the market has been quiet, but due to how Chinese suppliers are pushing the price down, it is actually falling to unfathomable level. Therefore, I believe it is possible that someone is buying at a price as low as USD4,700/t FOB."

Analysts said the price downtrend will slow down this week as suppliers have started complaining of the low price and will try all they can to wedge from falling further.