Magnesium ingot price slides down in Shanxi and Ningxia

1 Feb 10 – Except some smelters in Wenxi who still hold their price at around RMB16,300/t (USD2,387/t) ex works, many others from Shanxi and Ningxia have sold small batches of magnesium ingot at RMB16,050-16,200/t (USD2,350-2,372/t) ex works. According to sources, some have agreed to sell at RMB16,000/t (USD2,343/t) ex works since late last week.
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A Ningxia-based producer, whose monthly output is around 400t at present, revealed to Asian Metal that they started to ink deals at RMB16,000/t (USD2,343/t) ex works with the offer at RMB16,100/t (USD2,357/t) ex works in the past one week. The concluded price has decreased by nearly RMB400/t (USD59/t) compared with that in the middle of last month.
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The source, who has no stocks on hand now, anticipates that magnesium ingot price might dip further in the following one week. "As the price is on the decline, the transactions slow down. I think the price will drop to RMB15,800/t (USD2,313/t) ex works before the Spring Festival," the source said.
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A Shanxi-based producer, who is operating with an output of 1,000tpm, confirmed that the price in local market is around RMB16,000-16,100/t (USD2,343-2,357/t) ex works at the moment. "We are unwilling to sell our magnesium ingot at such low prices for the time being, for we even can get little profit. We hold back from offering," the source explained. Most of their deals were closed at around RMB16,400/t (USD2,401/t) ex works in early January.
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The source, who is not in urgent need of cash, is watching the market and expects the price might decrease by another RMB200/t (USD29/t) in the following days. Meanwhile, the source disclosed that the price of ferrosilicon is RMB6,400/t (USD937/t) ex works, which is RMB100/t (USD15/t) lower than that of their last purchase in early last month. "The small decline in ferrosilicon price has not reduced our production cost a lot," the source lamented.