Magnesium ingot market continues to worsen with prices showing signs to decrease further from the current level of RMB22,200-22,600/t (USD3,250-3,309/t) ex works. Many producers have lost confidence in the future market and begun to undersell materials, sources reported to Asian Metal today.
A Henan-based trader who plans to buy a batch of magnesium ingot decides to wait for one or two days with strong believe that the price will go lower. According to the source, many magnesium producers do not quote now because they are well aware that whatever they quote, buyers will ask for a lower price.
"The prevailing firm offers we got late last week were in a range of RMB22,200-22,500/t (USD3,250-3,294/t) ex works RMB500-600/t (USD73-88/t) lower than those early this month, but we aim to buy at a price below RMB22,000/t (USD3,222/t) ex works," said the source, adding that they bought less than 100t of magnesium ingot at RMB20,300/t (USD2,972/t) VAT excluded last week.
The source is not worried about the sudden price rebound, arguing that although more magnesium smelters reduced or halted production due to the sluggish market, extremely poor demand all over the world will prevent the price from going up.
An official from a Shaanxi-based magnesium ingot smelter holds the same opinion. Running at its full capacity of 5,000tpy, the smelter has a stock of over 100t. "The quantity of our stock is really small compared with that of some other large smelters in Shaanxi who hold 1,000-2,000t in stock," said the source, taking the considerable amount of stock to be a potential hazard to the future market.
The source puts the workable price of magnesium ingot at RMB22,200-22,400/t (USD3,250-3,280/t) ex works in the region and confirmed that some smelters have already undersold the material at RMB22,000/t (USD3,221/t) ex works. Meanwhile, the source revealed that they sold a small quantity of magnesium ingot at RMB20,000/t (USD2,928/t) VAT excluded last week while more smelters have lowered their offers to RMB19,700-19,800/t (USD2,884-2,899/t) VAT excluded this week. "We have not seen the end of the price decrease, so what we have to do is to sell as soon as possible and as much as possible," said the source.
A Henan-based trader who plans to buy a batch of magnesium ingot decides to wait for one or two days with strong believe that the price will go lower. According to the source, many magnesium producers do not quote now because they are well aware that whatever they quote, buyers will ask for a lower price.
"The prevailing firm offers we got late last week were in a range of RMB22,200-22,500/t (USD3,250-3,294/t) ex works RMB500-600/t (USD73-88/t) lower than those early this month, but we aim to buy at a price below RMB22,000/t (USD3,222/t) ex works," said the source, adding that they bought less than 100t of magnesium ingot at RMB20,300/t (USD2,972/t) VAT excluded last week.
The source is not worried about the sudden price rebound, arguing that although more magnesium smelters reduced or halted production due to the sluggish market, extremely poor demand all over the world will prevent the price from going up.
An official from a Shaanxi-based magnesium ingot smelter holds the same opinion. Running at its full capacity of 5,000tpy, the smelter has a stock of over 100t. "The quantity of our stock is really small compared with that of some other large smelters in Shaanxi who hold 1,000-2,000t in stock," said the source, taking the considerable amount of stock to be a potential hazard to the future market.
The source puts the workable price of magnesium ingot at RMB22,200-22,400/t (USD3,250-3,280/t) ex works in the region and confirmed that some smelters have already undersold the material at RMB22,000/t (USD3,221/t) ex works. Meanwhile, the source revealed that they sold a small quantity of magnesium ingot at RMB20,000/t (USD2,928/t) VAT excluded last week while more smelters have lowered their offers to RMB19,700-19,800/t (USD2,884-2,899/t) VAT excluded this week. "We have not seen the end of the price decrease, so what we have to do is to sell as soon as possible and as much as possible," said the source.
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