Magnesium market is quiet in Europe because of the summer holiday, and sources said nothing absolutely is going on. However, some participants anticipated lower prices after the holiday, looking at the market from the side of demand, which will keep low till end of August.
Not like when demand is weak, price has kept stable at around USD4,500-4,600/t in Rotterdam warehouse as business started on Monday.
A western trader who said he is negotiating deals this weak at USD4,300/t CIF Rotterdam port, said they are expecting the price to go down after the holiday because demand in China can not hold the price hanging at this level for over a month.
“Foreign buyers are the back bone of magnesium and if we are out of the market it will put pressure on the price,” said the source. “ Chinese suppliers must be sitting on hot iron now, and most of them have started calling making offers which tells you how they are pressured to sell.”
“Not big tonnages of magnesium deals are going on in Europe as consumers are on holidays,” said another trader. “We are expecting consumers back in the market by early September to cover for 4th quarter, but the price is stable right now.”
Although the price keeps stable at the moment, many people have a lot of magnesium in stock and they must sell it before oxidation. Therefore, many dealers are trying their best to sell. The source will sell 20t today and the deal could be concluded at around USD4,400/t in Rotterdam warehouse.