Magnesium price may drop further in Russia

Magnesium price may drop further in Russia with the decline of magnesium market in China. Participants reported to Asian Metal that the concluded price of magnesium ingot was around RUB170-175/kg (USD7,190-7,400/t) and suppliers have difficulty selling the material at RUB180/kg (USD7,612/t) for the time being.
A Russian consumer purchased 10t of magnesium ingot at a lower price yesterday with the monthly purchasing volume of around 20-30t of magnesium ingot in the spot market. "The magnesium market is in a state of chaos as we received offers from RUB165/kg (USD6,978/t) to RUB190/kg (USD8,035/t), while few deals are concluded in the market," said the source.
The source said that some traders were active in purchasing early June as they believe the price may go up further. However, consumers are reluctant to purchase, which leads to large stocks in the market. "We think the mainstream price is around RUB170-173/kg (USD7,190-7,316/t). We are unwilling to purchase at RUB180/kg (USD7,612/t) currently," said the source.The source believes the magnesium price may go down in a short time due to adequate supply.
A Russian trader said that few deals are concluded as some consumers stop purchasing to wait for lower prices, unwilling to accept the price of RUB180/kg (USD7,612/t). "We still offer RUB180/kg (USD7,612/t) for magnesium ingot, the same as that of last week. Yet we have not concluded any deals this week," said the source.
Asianmetal(English) http://www.asianmetal.com YMUH
In view of the current market situation, the source plans to lower offers soon.