According to latest statistics released by China Customs, exports of magnesium products rose notably in July. China exported 9,616t of magnesium ingot in July, 30.01% up month-on-month. Export value totaled USD24,335,971, increasing by 29.26%min compared to the same month last year. Exports for magnesium alloy and magnesium powder in July were 6,367t and 3,168t respectively, up by 49.86% and 156.16% respectively month-on-month. July exports for magnesium alloy and magnesium ingot rank first in the first seven months of this year, while the export volume of magnesium ingot in July is less than the figure in May, when China exported a total of 9,980t. Nevertheless, July exports for magnesium ingot, alloy and powder are 44.73%, 20.40%, 69.43% less respectively year-on-year.
India distinguished itself in the magnesium ingot importers in July. China exported 1,197t of magnesium ingot to India in July, showing an increase of 158.80% compared to June. The total export volume to India through the first seven months of this year amounts to 4,544t, 16.32% up compared to 3,906t during the corresponding period of last year. China exported 6,441t and 5,432t of magnesium ingot respectively in 2007 and 2008. A Shanxi-based trader reported that Indian buyers have been more active in the market since the financial crisis broke out than those from Europe, Japan and South Korea, many of whom suspended purchasing or left the market. On the on hand, the financial turmoil did not hit Indian economy as much as it did in other developed countries; on the other hand, Indian consumers usually do not heap up stocks, so they have to keep buying raw material in order to maintain normal production. According to an Indian trader, demand for magnesium ingot keeps steady in India which consumes about 600t of the material per month, moderately up compared to last year.
Magnesium alloy exports have been on the rise from March to July. Although the volume is still much less than the figure in the corresponding period of last year, it shows signs that demand in various sectors is recovering step by step in many countries. 3,038t of magnesium alloy were exported from China to Netherlands in July which occupied 47.72% of the total exports of magnesium alloy and increased by 118.55% compared to last month. The export volume in July is close to the average monthly export volume of 3,234t last year, indicating that the European magnesium alloy market improves.
The significant increase in export volume of magnesium powder in July shows that demand from overseas consumers gradually recovers. Some Chinese magnesium powder producers revealed that orders from foreign buyers increased in June and July. Although the purchasing quantity is much less compared to last year, domestic producers are still encouraged.
Undoubtedly, the recovery of magnesium exportation was one of the important reasons that magnesium price soared in domestic market. Some major magnesium powder producers, magnesium alloy producers as well as exporters supplemented stocks in June and July with low prices. The increased inquiries in the market stimulated magnesium ingot smelters to raise offer again and again. From the end of June to the middle of August, the mainstream price of magnesium market hiked from RMB14,900-15,200/t ex works to RMB16,500-16,800/t ex works.