Sources reported that the magnesium ingot market has seen more deals concluded over the past ten days with prices in a wide range. Some buyers claimed that they could obtain the material at RMB15,200/t (USD2,225/t) ex works from Shaanxi while some Shanxi-based producers still insist on offers of RMB15,700-15,800/t (USD2,299-2,313/t) ex works.
A Shaanxi-based producer currently offers RMB15,300/t (USD2,240/t) ex works for magnesium ingot but has no spot material to supply. All the output before the beginning ofGOctober has been booked at prices ranging RMB15,150-15,250/t (USD2,218-2,233/t) ex works without acid treatment and package.
According to the source, the magnesium ingot market has become more active since early last week. Many consumers and traders have thrown out orders. Although some smelters keep their offers stable and some even raise offers slightly by RMB50-100/t (USD7-15/t) to RMB15,400-15,500/t (USD2,255-2,269/t) ex works, for they receive more orders, a few smelters who are not so confident in the future market are willing to conclude deals at RMB15,200/t (USD2,225/t) ex works.
The source worries that if more smelters accumulate stocks during the long National Day holiday, the price may experience a slight decrease immediately after the holiday.
The smelter, with a production capacity of 10,000tpy, is running with a monthly output of around 400t.
A North China-based trader just ordered a batch of magnesium ingot at RMB15,200/t (USD2,225/t) ex works from Fugu, Shaanxi to fulfill the signed export contracts. The source confirmed to Asian Metal that magnesium ingot offers stay in a wide range of RMB15,200-15,800/t (USD2,225-2,313/t) ex works. Currently some major Shanxi-based producers still put their offers at RMB15,700-15,800/t (USD2,299-2,313/t) ex works.
"We believe that those who offer RMB15,700-15,800/t (USD2,299-2,313/t) ex works cannot conclude deals at such a high level while others in the region are willing to sell at RMB15,500-15,600/t ex works and those in Shaanxi can accept RMB15,200-15,300/t (USD2,225-2,240/t) ex works," said the source, revealing that the reason that some smelters send high offer is that they have booked out the output in the following few days without spot material in hand.
The source also worries that the magnesium ingot price may retreat slightly in early October as many consumers and dealers have replenished stocks over the past ten days and plan to make some purchases before the long holiday. The source has bought more than 200t of the material in recent one week.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment