Chinese magnesium alloy prices decrease
2024-03-07 08:27:54 [Print]
BEIJING (Asian Metal) 7 Mar 24 - Taking decreasing upstream magnesium ingot prices and slow demand from downstream 3C and die casting industries into consideration, Chinese magnesium alloy market witnessed slow movements and most participants showed pessimistic attitudes towards the market trend. The prevailing Chinese magnesium alloy prices moved down to the present RMB20,500-21,000/t (USD2,847-2,916/t) EXW D/P, a decrease of RMB500/t (USD69/t) from late last week. Insiders are of the opinion that the mainstream Chinese magnesium alloy prices would stay soft in the coming days given continuous slack movements and softening upstream magnesium ingot prices.
"As upstream magnesium ingot prices decreased to the present RMB18,600/t (USD2,583/t) EXW D/P and some suppliers even could accept RMB18,500/t (USD2,569/t) with any deals more than 30t, I lowered my offer for magnesium alloy to the present RMB20,700/t (USD2,875/t) EXW D/P," said a magnesium alloy producer, noting that his clients hesitated to purchase with an expectation of further price decrease to be witnessed. Additionally, more buyers prefer to run down stocks in hand and the spot market moved slowly. He last sold about 30t early this week at RMB21,000/t (USD2,916/t) and kept carrying out some signed long-term deals since then. In view of softening upstream magnesium ingot prices and cautious purchase from downstream die casting plants, he anticipates that the mainstream Chinese magnesium alloy prices would go down by another RMB200/t (USD28/t) in the coming days.
The producer, with an annual production capacity of 15,000t, predicts to produce about 800t of magnesium alloy in March and produced around 700t in February. He holds 50t of stocks now, while no inventory late last month. He produced about 9,800t of the metal in 2023 and predicts to produce about 2,300t of the material in Q1 of 2024.
"I planned to produce about 400t of magnesium alloy in March, but only could produce 200t for lack of deals," said a magnesium alloy producer in North China, adding that his clients showed little interests in purchasing magnesium alloy at RMB20,700/t (USD2,875/t) EXW D/P and he could accept RMB20,600/t (USD2,861/t) with any deals more than 20t in the spot market, while his clients still prefer to watch the market. He last sold about 20t of the metal late last week at RMB21,100/t (USD2,930/t) and kept updating offers for his clients in the following days. Considering weakening demand from die casting and 3C plants and softening ingot prices, he anticipates that the mainstream Chinese magnesium alloy prices would move down by another RMB100/t (USD14/t) in the next two days.
With an annual production capacity of 8,000t, the producer predicts to produce about 200t of magnesium alloy in March and produced about 100t in February. He holds no inventory now, unchanged from late last month. He produced about 600t of the metal in Q4 of 2023 and predicts to produce about 400t in Q1 of 2024.
"As upstream magnesium ingot prices decreased to the present RMB18,600/t (USD2,583/t) EXW D/P and some suppliers even could accept RMB18,500/t (USD2,569/t) with any deals more than 30t, I lowered my offer for magnesium alloy to the present RMB20,700/t (USD2,875/t) EXW D/P," said a magnesium alloy producer, noting that his clients hesitated to purchase with an expectation of further price decrease to be witnessed. Additionally, more buyers prefer to run down stocks in hand and the spot market moved slowly. He last sold about 30t early this week at RMB21,000/t (USD2,916/t) and kept carrying out some signed long-term deals since then. In view of softening upstream magnesium ingot prices and cautious purchase from downstream die casting plants, he anticipates that the mainstream Chinese magnesium alloy prices would go down by another RMB200/t (USD28/t) in the coming days.
The producer, with an annual production capacity of 15,000t, predicts to produce about 800t of magnesium alloy in March and produced around 700t in February. He holds 50t of stocks now, while no inventory late last month. He produced about 9,800t of the metal in 2023 and predicts to produce about 2,300t of the material in Q1 of 2024.
"I planned to produce about 400t of magnesium alloy in March, but only could produce 200t for lack of deals," said a magnesium alloy producer in North China, adding that his clients showed little interests in purchasing magnesium alloy at RMB20,700/t (USD2,875/t) EXW D/P and he could accept RMB20,600/t (USD2,861/t) with any deals more than 20t in the spot market, while his clients still prefer to watch the market. He last sold about 20t of the metal late last week at RMB21,100/t (USD2,930/t) and kept updating offers for his clients in the following days. Considering weakening demand from die casting and 3C plants and softening ingot prices, he anticipates that the mainstream Chinese magnesium alloy prices would move down by another RMB100/t (USD14/t) in the next two days.
With an annual production capacity of 8,000t, the producer predicts to produce about 200t of magnesium alloy in March and produced about 100t in February. He holds no inventory now, unchanged from late last month. He produced about 600t of the metal in Q4 of 2023 and predicts to produce about 400t in Q1 of 2024.
