Some sources revealed to Asian Metal that they reduced the magnesium ingot price to cope with the weak demand in the market. Participants predict magnesium price would continually slides down in last two weeks.

A Shanxi-based smelter told Asian Metal that they offer RMB16,400-16,500/t ex works but no deal has been concluded so far this week. “I have less confidence in the future market. I think the price may drop below RMB16,000/t ex works,” the source said.

The source added that magnesium ingot supply increases in August, but the market demand is still weak. “Many consumers bought abundant magnesium ingot when the price soared, for fear the price may rise further. They have enough stock now and are not in a hurry to purchase,” the source said.

Moreover, the source confirmed that steel industry and ferrosilicon market keep sluggish. Magnesium ingot price would be dragged down. The smelter is running with a output of 600-700tpm and has a stock of 100t in hand.

Another Shanxi-based trader said to Asian Metal that they concluded a few of deals at USD2,800/t FOB Tianjin. “ I learnt that many smelters reduced offers but I don’t think the magnesium ingot price will drop below RMB16,200/t delivered to Tianjin. As far as I know, many smelters do not have stock in hand,” the source said.

The source usually purchases magnesium ingot from Taiyuan and they bought a batch of magnesium ingot at RMB16,500/t delivered to Tianjin this week.