Magnesium alloy prices decrease slightly with few deals concluded in China
2016-03-23 08:50:11 [Print]
BEIJING (Asian Metal) 23 Mar 16 - Chinese magnesium alloy prices showed the down-moving trend this week in line with price decline from upstream magnesium ingot market. The mainstream prices for magnesium alloy decrease to RMB14,700-14,850/t (USD2,261-2,284/t) ex works for the moment, down by about RMB50/t (USD8/t) compared with those of late last week. Currently, most consumers hold minimal purchasing volume to guarantee the basic requirements and the trading volume remains thin in the spot market.
A magnesium alloy consumer in South China stated that he purchased about 40 tons of the materials at RMB14,900/t (USD2,292/t) ex works in the past one week and the price decreased to RMB14,850/t (USD2,284/t) ex works from this Monday. “As price showed downward trend, I intend to delay purchasing plan till next week,” said the source, anticipating that magnesium alloy price will go down further in line with upstream magnesium ingot price downward trend in the remainder of March.
The consumer, whose annual consumption volume is about 2,400 tons, purchased 80 tons in February and planned to buy 100 tons in March, holding 20 tons of stocks on hand for the moment. “The stocks on hand are enough for us to consume this week, so we are no anxious to add stocks for the time being,” said the source.
A magnesium alloy producer in Shanxi also confirmed price decline and limit buying activity in the spot market. “Following magnesium ingot price decline from RMB12,600/t (USD1,938/t) ex works and RMB11,650/t (USD1,792/t) ex works without VAT last week to RMB12,500/t (USD1,923/t) ex works and RMB11,600/t (USD1,784/t) ex works without VAT respectively, we also moved down magnesium alloy prices by about RMB50/t (USD8/t) to RMB14,700/t (USD2,261/t) ex works and RMB13,800/t (USD2,123/t) ex works with VAT excluded,” said the source. Currently, the transactions slow down in the spot market and downstream consumers ask for much lower prices. The source accepted an order for 120 tons late last week and concluded at RMB14,750/t (USD2,269/t) ex works, but no new deals finalized this week at RMB14,700/t (USD2,261/t) ex works.
With an annual production capacity of 20,000t, the supplier’s output was about 1,000 tons in February and he plans to produce 1,200 tons in March, holding 300 tons of the stocks on hand now. “Consumers just send inquires to check market trend but few real deals are witnessed in the spot market,” said the source.
A magnesium alloy consumer in South China stated that he purchased about 40 tons of the materials at RMB14,900/t (USD2,292/t) ex works in the past one week and the price decreased to RMB14,850/t (USD2,284/t) ex works from this Monday. “As price showed downward trend, I intend to delay purchasing plan till next week,” said the source, anticipating that magnesium alloy price will go down further in line with upstream magnesium ingot price downward trend in the remainder of March.
The consumer, whose annual consumption volume is about 2,400 tons, purchased 80 tons in February and planned to buy 100 tons in March, holding 20 tons of stocks on hand for the moment. “The stocks on hand are enough for us to consume this week, so we are no anxious to add stocks for the time being,” said the source.
A magnesium alloy producer in Shanxi also confirmed price decline and limit buying activity in the spot market. “Following magnesium ingot price decline from RMB12,600/t (USD1,938/t) ex works and RMB11,650/t (USD1,792/t) ex works without VAT last week to RMB12,500/t (USD1,923/t) ex works and RMB11,600/t (USD1,784/t) ex works without VAT respectively, we also moved down magnesium alloy prices by about RMB50/t (USD8/t) to RMB14,700/t (USD2,261/t) ex works and RMB13,800/t (USD2,123/t) ex works with VAT excluded,” said the source. Currently, the transactions slow down in the spot market and downstream consumers ask for much lower prices. The source accepted an order for 120 tons late last week and concluded at RMB14,750/t (USD2,269/t) ex works, but no new deals finalized this week at RMB14,700/t (USD2,261/t) ex works.
With an annual production capacity of 20,000t, the supplier’s output was about 1,000 tons in February and he plans to produce 1,200 tons in March, holding 300 tons of the stocks on hand now. “Consumers just send inquires to check market trend but few real deals are witnessed in the spot market,” said the source.
Magnesium Alloy AZ91D FOB China
Unit:USD/mt
China magnesium alloy producers' sales volume statistics by month
Unit: mt
