20 Aug 08 – The export market for magnesium ingot remains quiet with few inquiries showing up. Additionally, some exporters are unclear about the price floor policy which becomes a hot topic presently, so they dare not clear customs in a hurry, market sources reported to Asian Metal.
A Shanxi-based trader who exports 200-400tpm of magnesium ingot reported that the export market has been dull for over two months while they only concluded three or four small deals with foreign customers.
AThe source revealed that they concluded a deal of 120t at USD4,300/t FOB Tianjin with a consumer from East Europe a week ago for with shipment no later than August. “We’re satisfied with the concluded price, as many others said that they could seal a deal at prices above USD4,200/t FOB,” said the source.
However, the source dares not arrange shipment for the contracted material after learning that Tianjin Customs adopted price floor policy on magnesium export and exporters should have to pay more export tax according to a limit price which is much higher than the current market price.
An official from a Shanxi-based smelter also expressed the concern about the export policy, believing that the limit price may make the market situation worse. “The export market has been sluggish. Furthermore, if more suppliers suspended exporting, the domestic price is bound to decrease due to increasing supply,” said the source.
The source revealed that the policy is still unclear now, as only one or two exporters reported that their materials were trapped by the customs. Therefore, participants have to keep a close eye on the market.
According to the source, the smelter is running with a small output of 300-400tpm, and most of the materials are sold in the domestic market. “We exported some materials via trading companies, but few traders ordered materials from us as they had not received any inquiries from foreign buyers,” said the source. The source thinks that the price of USD4,050-4,150/t FOB should be workable for the time being.