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Mg Prices Slightly Declined in China (October13th–October17th)

  • Monday, October 20, 2014
  • Source:ferro-alloys.com

  • Keywords:Mg,Magnesium ingot,Supply,Capacity,China
[Fellow]Mg producers kept normal production and statistics showed already operating capacity of magnesium reached 750 thousand tons in Fugu and Shenmu Counties of China’s Shaanxi province.

[Ferro-alloys.com] Mg producers kept normal production and statistics showed already operating capacity of magnesium reached 750 thousand tons in Fugu and Shenmu Counties of China’s Shaanxi province. Supply was enough and demand was low, which resulted in lower prices again in China. The lowest quotation for non-pickling Mg ingot 99.90% reached RMB14,300/mt and highest one was RMB14,400/mt, ex-work tax-inclusive price in cash in Shaanxi’s Fugu county. Mainstream Shaanxi Mg99.90% price was RMB14,300-14,400/mt(USD2,335-2,351/mt), non-pickling ex-work tax-inclusive price in cash.

Although magnesium ingot prices were seen with slight decrease, export market of Chinese magnesium remained steady. Chinese magnesium ingots were mainly exported to the EU market. Export price of magnesium ingot 99.90% remained USD 2,450-2,500/mt, FOB at Tianjin port. European magnesium ingot 99.90% declined to USD 2,570-2,620/mt.US magnesium 99.90% price stabilized at USD1.90-2.25/lb.

Analysis: Market prices of magnesium ingot had been much lower than production cost, implying little room for further decline. Although November purchase prices of ferrosilicon suffered pressure for slight decline, European and other magnesium dealers were expected to show stronger purchase activity. Thus magnesium ingot market was expected to slightly rise in late October in China.

  • [Editor:Phillip.Feng]

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