Magnesium alloy bar going through further price decrease
2013-06-06 08:49:04 [Print]
BEIJING (Asian Metal) 5 Jun 13 - Magnesium alloy bar (length: 1.5-1.7m, radius: 6-7cm) has undergone another price reduction by RMB200/t (USD32/t) ex works with RMB15,700-15,900/t (USD2,543-2,576/t) ex works giving the back seat to RMB15,500-15,700/t (USD2,511-2,543/t) ex works on magnesium ingot recently. Undoubtedly, consumers continue to watch the market in expectation of their access to the bottom price rather than RMB23,800-24,100/t (USD3,855-3,904/t) ex works, the novel price.
A Henan magnesium alloy bar smelter with an output of 100tpm confirms with Asian Metal the wait-and-see state of mind of downstream purchasers particularly when bar keeps declining in price. “More and more buyers feel like looking on since they find bar’s (length: 1.5-1.7m, radius: 6-7cm) been getting cheaper since two months ago,” judged the source, making price adjustment according to the market conditions of both magnesium ingot and alloy.
“Ingot’s gone cheap to RMB15,500/t (USD2,511/t) ex works in Shaanxi now, RMB200/t (USD32/t) ex works cheaper than last week,” pointed he, who starts to draw the line at RMB23,800/t (USD3,855/t) ex works instead of RMB24,000/t (USD3,887/t) ex works now. According to him, consumers shall take a watching measure whether he springs into action or not. “Buyers would turn to my peers if I refused to give in,” concluded he.
A second Henan producer, who yields average 70-80t of magnesium alloy bar (length: 1.5-1.7m, radius: 6-7cm) every month, has also marked down the price by RMB200/t (USD32/t) ex works ensuing the price glides by another RMB200/t (USD32/t) ex works in ingot recently. “I’d like to sell at RMB23,900/t (USD3,871/t) ex works now,” told he, who drew the line at RMB24,100/t (USD3,904/t) ex works before his price concession.
When he referred to his bar business, the producer revealed that the market is moving slowly in spite of the steady requirement in the past few months. “Bar will sell hard so long as buyers stand by on seeing it going cheap,” pointed he, assuring Asian Metal that the market would have testified to stablised prices if magnesium ingot had not undergone price slumps from RMB16,800-17,300/t (USD2,721-2,802/t) ex works since two months ago.
A Henan magnesium alloy bar smelter with an output of 100tpm confirms with Asian Metal the wait-and-see state of mind of downstream purchasers particularly when bar keeps declining in price. “More and more buyers feel like looking on since they find bar’s (length: 1.5-1.7m, radius: 6-7cm) been getting cheaper since two months ago,” judged the source, making price adjustment according to the market conditions of both magnesium ingot and alloy.
“Ingot’s gone cheap to RMB15,500/t (USD2,511/t) ex works in Shaanxi now, RMB200/t (USD32/t) ex works cheaper than last week,” pointed he, who starts to draw the line at RMB23,800/t (USD3,855/t) ex works instead of RMB24,000/t (USD3,887/t) ex works now. According to him, consumers shall take a watching measure whether he springs into action or not. “Buyers would turn to my peers if I refused to give in,” concluded he.
A second Henan producer, who yields average 70-80t of magnesium alloy bar (length: 1.5-1.7m, radius: 6-7cm) every month, has also marked down the price by RMB200/t (USD32/t) ex works ensuing the price glides by another RMB200/t (USD32/t) ex works in ingot recently. “I’d like to sell at RMB23,900/t (USD3,871/t) ex works now,” told he, who drew the line at RMB24,100/t (USD3,904/t) ex works before his price concession.
When he referred to his bar business, the producer revealed that the market is moving slowly in spite of the steady requirement in the past few months. “Bar will sell hard so long as buyers stand by on seeing it going cheap,” pointed he, assuring Asian Metal that the market would have testified to stablised prices if magnesium ingot had not undergone price slumps from RMB16,800-17,300/t (USD2,721-2,802/t) ex works since two months ago.
Magnesium Alloy AZ91D FOB China
Unit:USD/mt
China magnesium alloy producers' sales to production ratio statistics by month
Unit: %
