Magnesium ingot price rises mildly in South Korea

BEIJING (Asian Metal) 21 Jul 09 – With Chinese magnesium ingot prices increasing on slightly stronger domestic demand and decreased stockpiles, South Korean buyers reported that they received higher offers for magnesium ingot. However, buyers said the demand for the material has not seen significant improvement.
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A South Korean trader reported that offers for magnesium ingot that they received this week were in a range of USD2,540-2,570/t FOB Chinese main ports, USD30-40/t higher than the offers two weeks ago.
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Meanwhile, the source reported that he purchased a batch of magnesium ingot from a Chinese trader at an unusually low price of USD2,460/t FOB Chinese main port at the beginning of July but most other suppliers quoted USD2,500-2,520/t FOB Chinese main ports at that time.
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The source imports two or three containers of magnesium ingot every month from China to serve domestic end users. He has not seen any significant improvement in the demand side. However, the source believes that the magnesium demand may get better in the fourth quarter of this year with global economy climbing out of recession slowly.
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Having not received new inquiries from customers, the source is not in a hurry to supplement stocks at the moment.
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A South Korean consumer in chemical industry reportedly received higher offers for magnesium ingot this week. The source bought four containers of magnesium powder 99.95%min with special requirements on content of silicon and some other impurity at USD2,650/t CIF Busan at the beginning of July.
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"We plan to make next purchase at the end of July, but offers we received from suppliers are USD20-30/t higher than our last purchase," said the source. "We were told that Chinese domestic market experienced a price increase, and that's why suppliers quoted higher price to us."
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Meanwhile, the source confirmed that the demand for magnesium ingot has not improved in South Korea as consumers in steel, auto as well as chemical industries are still not active in purchasing the material.