Magnesium ingot market is stable but quiet presently with buyers and sellers all holding back from moving. The material is being offered at RMB24,000-24,300/t (USD3,509-3,553/t) ex works while the concluded price is considered to be in a range of RMB23,800-24,000/t (USD3,480-3,509/t) ex works.
A Shanxi-based producer reported to Asian Metal that the magnesium ingot market has not changed much this week. "Neither buyers nor sellers want to make a concession to each other, so they are watching the market closely for the time being," said the source.
The source puts the mainstream concluded price of magnesium ingot at RMB23,800-24,000/t (USD3,480-3,509/t) ex works, but revealed that many smelters would not like to sell at prices below RMB24,000/t (USD3,509/t) ex works. The source does not think the market will go robust soon, though there are more inquiries coming from foreign buyers who are just testing the market. However, the possibility that the price may drop further by a large margin can be ruled out given the high-held production cost.
Running below its capacity of 10,000tpy, the smelter has not concluded any deal this week.
A producer from South Shanxi confirmed that the magnesium ingot market comes to a standstill as producers refuse to lower their prices further while buyers think the there is still room for the price to go down.
Owing to the sluggish market, the smelter, with a capacity of 5,000tpy, halted production a week ago. It has sold all the stocked materials at prices ranging RMB24,000-24,200/t (USD3,509-3,538/t) ex works. "We received some inquiries from end users, so we intend to buy some magnesium ingot from other smelters in the local area," said the source. "However, some local smelters quote as high as RMB24,400-24,500/t (USD3,567-3,582/t) ex works, which keep us away from buying."
AAccording to the source, due to the increasing price of coal and the bearish coke market, some smelters in Taiyuan, Shanxi have also been forced to reduce production due to high cost or lack of coal-gas. In addition, smelters in South Shanxi are still out of production. Therefore, the stock of magnesium ingot in Shanxi is not so high as it was last month. "Coupled with more inquiries, the magnesium market may keep comparatively stable in the following one or two weeks," the source added.