BEIJING (Asian Metal) 4 Jun 08 - Magnesium price went up in European market as Chinese suppliers insist on selling as high as around USD6,000/t FOB China. Sources said the price in warehouse Rotterdam went up from USD6,000-6,100/t sold last week to around USD6,100-6,200t this week.
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Most deals were concluded at the high side of price level of around USD6,200/t, signaling a price that is not ready to slide in few weeks. Many participants forecast that price may reach around USD6,500/t in warehouse Rotterdam if Chinese FOB price remains high.
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According to a source who concluded deals at around USD6,200/t, up from USD6,000/t concluded last week in warehouse Rotterdam and put the mainstream price at around USD6,100-6,250/t , the price increase is not as a result of strong demand but because price sail inline with Chinese prices.
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“Most consumers are not ready to bend to the price increase and many of them are buying only hand to month,” said the source. “Although the market is quiet but I do not think it will touch the price.”
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Many participants frown over the current price increase in the market as they think it is not the right time for such improvement of the price which may kill the market with a European trader who claimed a deal at around USD6,220/t and quoted at around USD6,300/t in warehouse Rotterdam saying it is difficult to concluded a deal of large quantities in the market now.
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But judging from the look of things, Chinese suppliers are not ready to allow the price to slide in a short time.

BEIJING (Asian Metal) 29 May 08—Participants told Asian Metal that Russian magnesium price continues rocketing and this week the concluded price is up to RUB165-170/kg (USD6,990-7,200/t) d.p., increased by RUB5-10/kg (USD212-424/t) compared with that of last week.
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Local participants said that some magnesium consumers do not accept the high price and some consumers from die-casting sectors have started to use other materials as substitute.
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A Russian trader sold 10t of magnesium at RUB170/kg (USD7,200/t) d.p. this week. The source has a monthly trading volume of around 40t of magnesium ingot. The source said that Russian magnesium price has been rising unreasonably these two weeks and many participants just watch the market as they can not see the market direction clearly. Therefore, the concluded price rockets as consumers can not get enough materials with the supply decreasing.
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The source believes that consumers cannot accept any prices higher than RUB170/kg (USD7,200/t) and the price may keep at the current level in a short time.
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Another trader in Russia said, “The magnesium price rises rapidly and we have only purchased 30t of the material in May. However, we sell around 60t of magnesium ingot monthly.” The source dares not purchase materials from producers directly at such high prices.
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The source confirmed that this week the concluded price of magnesium ingot is up to RUB165-170/kg (USD6,990-7,200/t) d.p., increased by RUB5-10/kg (USD212-424/t) compared with that of last week. The source said, “We have no stockpile and have no intention of purchasing now. We prefer to watch the market.”
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The source believes magnesium price will not rise in a short time if the market continues to see thin trading.

BEIJING (Asian Metal) 29 May 08 – Many Indian buyers received higher offers of USD6,100-6,150/t CIF Indian main ports for magnesium ingot but refused to place orders at such high prices. Some of them felt that the market has touched the ceiling and is about to turn around soon, market sources reported to Asian Metal.

An Indian trader who buys about 200tpm of magnesium ingot from China declined an offer of USD6,150/t CIF Nava Sheva from a Chinese supplier whereas the offer was at around USD6,050/t CIF Nava Sheva last week.

“As far as I know, few traders and consumers have bought magnesium ingot from China during the past two weeks due to the high price,” said the source. “Demand of magnesium in Indian local market is showing signs of shrinking.”

The source believes that it will be difficult for Chinese suppliers to raise offers further in the face of cooling demand from consumers.

Another Indian trader holds the same opinion. “We have not imported magnesium ingot from China since mid-May for lack of inquiries,” said the source. “If the situation keeps up, Chinese suppliers have to lower offers to attract buyers.”

The source also received offers of around USD6,100/t FOB Chinese main ports for magnesium ingot but failed to persuade end users to accept the high price.

Meanwhile, a trader from China’s Shanxi Province reported to Asian Metal that they quoted USD6,050/t FOB Tianjin to some Indian buyers but was turned down. “We finally concluded the deal at USD6,000/t FOB Tianjin, for the batch of material was purchased at a lower price. Additionally, we’re afraid that the market has touched the roof and may turn around soon.”

BEIJING (Asian Metal) 29 May 08 - The magnesium ingot market has shown some signs of calming down in China. Although many producers still insist on offers of around RMB37,000/t (USD5,331/t) ex works, few deals have been reportedly concluded at prices above RMB36,700/t (USD5,288/t) ex works. Some consumers have already started to watch the market for fear that the price would drop suddenly, market sources reported to Asian Metal.
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A Shanxi-based magnesium ingot producer thinks that the market is stable with the maintream price lingering at around RMB36,500/t (USD5,259/t) ex works. Although many smelters have begun to quote RMB37,000/t (USD5,331/t) ex works since the beginning of this week, few deals were reportedly concluded at such a high level. "Actually, we haven't closed any deals at prices above RMB36,600/t (USD5,274/t) ex works," said the source, adding that the smelter is carrying out contracts signed at RMB35,800-36,200/t (USD5,159-5,216/t) ex works.
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The source thinks that the magnesium ingot market is unlikely to drop in a short time, though it may not rise greatly either. "Although the current price is far higher than the production cost, the rising prices of ferrosilicon and coal will leave magnesium producers unwilling to lower the price," said the source. "On the other hand, it is not possible for the price to increase further; otherwise, more consumers will be driven out of the market, leading to the decrease of demand and consequent price decline."
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The smelter is running normally at its capacity of 10,000tpy. In view of the volatile market, it dares not sign long-term contracts, and most of the output is sold in the spot market.
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"The magnesium market seems to lose momentum to rise further," said a Hebei-based magnesium alloy producer, who purchases about 100t of magnesium ingot each month. "Some of our clients have already reduced the purchase of our products. If the magnesium ingot price continues to go up, most alloy manufaturers as well as end users will be driven out of the market."
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The source received an offer of RMB36,800/t (USD5,303/t) ex works from a Shanxi-based magnesium smelter but declined the offer for the high price and lack of enquiries for downstream products. However, the source predicts that the magnesium price is more likely to keep stable in the near term as producers will try their best to pretend the price from dropping in view of the higher production cost.