On February 17, 2005, the Department
of Commerce announced its final determinations in the antidumping duty
investigations of magnesium metal from the People's Republic of China
(PRC) and the Russian Federation (Russia). The Department found that
producers/exporters have sold magnesium metal from the PRC and Russia
in the U.S. market at less than fair value, with margins ranging from
91.31 to 141.49 percent and from 18.65 to 22.28 percent, respectively.
Company Qualifying for a "Separate Rate" (Section A Respondents): The
Department has determined that one Chinese company in this
investigation, Guangling Jinghua Science and Technology Co, Ltd., has
demonstrated an absence of government control with respect to its
export activities and is eligible for "separate rate" status. This
"separate rate" is determined by weighted-averaging the dumping margin
of the mandatory respondents in this investigation, excluding rates
which are based on "adverse facts available". Therefore, imports
produced and/or exported by Guangling Jinghua Science and Technology
Co, Ltd., will be subject to a "separate rate" of 91.31%.
Next Steps: The U.S. International Trade Commission (ITC) is scheduled
to announce its final injury determination on or about April 4, 2005.
If the ITC makes an affirmative determination that imports of magnesium
metal from the PRC and Russia are materially injuring, or threatening
to materially injure, the domestic industry in the United States, the
Department will issue antidumping duty orders and instruct U.S. Customs
and Border Protection to collect antidumping duties on the subject
imports. If the ITC makes a negative injury determination, the
investigations will be terminated and no order will be issued.
Petitioners: The petitions requesting these investigations were filed
on February 27, 2004, by the US Magnesium Corporation LLC (US
Magnesium), (UT); United Steelworkers of America, Local 8319, (UT); and
Glass, Molders, Pottery, Plastics & Allied Workers International,
Local 374, (CA), an ad hoc coalition representative of U.S. producers
of magnesium metal.
Product Description: The products covered by the two investigations
include primary and secondary pure and alloy magnesium metal,
regardless of chemistry, raw material source, form, shape, or size.
Although the Department has determined these products are one like
product for purposes of these investigations, the respective scopes of
the Chinese and Russian investigations differ because prior antidumping
duty orders exist on pure magnesium in both ingot and granular form
from the PRC. Therefore, the scope of the investigation for Russia
covers primary and secondary pure and alloy magnesium metal, whereas
the scope of the investigation for the PRC covers primary and secondary
alloy magnesium metal. Additional information on the scope of these
investigations is included in the Department's notices of final
determination.
Final Dumping Margins:
People's Republic of China
Tianjin Magnesium International Co., Ltd. – 91.31%
Guangling Jinghua Science and Technology Co, Ltd. – 91.31%
PRC-wide Entity – 141.49%
Russian Federation
Solikamsk Magnesium Works – 18.65%
Avisma Magnesium-Titanium Works – 22.28%
All Other's Rate – 21.45%
Final determinations in the antidumping duty investigations on magnesium metal from the People's Republic of China and the Russi
Rusal to build 40,000 tpy magnesium plant
| Aluminum producer Rusal will build a plant capable of producing 40,000
metric tons of metallic magnesium per year in the Volgograd region, the
Volgograd regional administration told Interfax. Rusal's PR manager, Vera Kurochkina, told Interfax that the company would carry out further exploration at a bishofit field this year and would complete a feasibility study for the magnesium plant. She did not say when the plant might be built or how much it might cost. "We need magnesium to produce alloys, and one of our strategic objectives is to increase the weighting of alloys to 50% of total aluminum output," Kurochkina said. Rusal has said it intends to achieve that objective by 2013. Output of cast-house alloys rose 33.5% to 740,000 mt in 2003 and accounted for 27.8% of total aluminum output. Rusal has a range of more than 80 alloys. Rusal-Bishofit won a public tender in December 2004 for the right to develop the estimated 50-million ton bishofit field, which is in the Gorodnishchensky district of the Volgograd region. |
Chinese magnesium prices dip on reduced demand in Europe
Chinese magnesium ingot prices have
fallen to $1,650-1,670/mt FOB China due to reduced demand from Europe,
market sources said Monday. Traders said most offers from China were
now quoted at around $1,650/mt FOB China this week, down from
$1,700-1,720/mt FOB China in February.
One local trader said: "Consumers in Europe are now buying ingot in
very small quantities as they still have stockpiles in the warehouses."
An official from Beijing Antaike, the state-run nonferrous metals
information provider, told Platts: "Smaller plants in China are
offering material at even lower prices at around $1,620-1,630/mt FOB
China. Those bigger magnesium plants in Shanxi province are now
offering slightly higher at around Yuan 16,000 ($1,933)/mt, equivalent
to around $1,650-1,670/mt FOB China."
He expected that prices would rebound in mid-March when most stockpiles
in Europe would be used up. "Demand for Chinese magnesium is set to
pick up by then," he added.
The Antaike official also said that magnesium alloy production in
Shanxi province was on the rise, and was expected to reach
260,000mt/year in 2007.
"More magnesium producers in China are increasing their output capacity
for magnesium alloy because of the higher profits gained when selling
to overseas," he said. "Producers only make marginal profits selling
magnesium ingot and hence they are now eyeing the alloy market due to
its more profitable market potential."
The official added that magnesium plants in Shanxi province had a
combined magnesium ingot, alloy and powder output of around
400,000mt/year in 2004. The province's production is expected to
increase to 500,000mt/year in 2007.