Magnesium alloy market witnessing further price slide
2012-12-11 08:50:10 [Print]
BEIJING (Asian Metal) 11 Dec 12 – The domestic magnesium alloy market has finally seen a price slide by RMB100/t (USD16/t) ex works with the price of magnesium ingot declining by another RMB100/t (USD16/t) ex works to RMB16,800-17,000/t (USD2,670-2,702/t) ex works in Shaanxi on Monday. However, magnesium alloy producers hold a negative attitude towards consumers’ active reaction to RMB19,200-19,400/t (USD3,051-3,083/t) ex works, the novel price.
A Shanxi magnesium alloy producer with an output of 2,000tpm admitted having reduced his quotation by RMB100/t (USD16/t) ex works in the light of the unceasing price reduction in magnesium ingot. “The material got another RMB100/t (USD16/t) ex works cheaper yesterday after it went down by RMB100/t (USD16/t) ex works in price last Friday,” recalled the source, adding that magnesium ingot has become available at RMB16,800-16,900/t (USD2,670-2,786/t) ex works in Shaanxi now. Therefore, he follows suit with a quotation markdown by RMB100/t (USD16/t) ex works to RMB19,300/t (USD3,067/t) ex works with his baseline restricted to RMB19,200/t (USD3,051/t) ex works.
He further explained the reason for the retarded price markdown in his circle that multitudinous counterparts are utilising their backups bought at a high price in comparison with the current one. Aware of the constant price decline in magnesium ingot, he intends for replenishment postponement in expectation of a more favourable price. “I’ve been looking on for long, and downstream buyers keep watching the alloy market too,” pointed he, who denies having achieved any new transaction since the beginning of December.
His local peer with a monthly output of 1,200t has lowered her offer by RMB100/t (USD16/t) ex works in view of the startlingly rapid price decrease in magnesium ingot too. “The material dropped by RMB100/t (USD16/t) ex works in price last Friday,” said she, “and it glided by another RMB100/t (USD16/t) ex works yesterday.” In order for consumers’ attention, she starts to draw the line at RMB19,200/t (USD3,051/t) ex works after a price reduction by RMB100/t (USD16/t) ex works now.
“I’d to bring down the price since most buyers are lying in wait for the bottom price,” judged the smelter, continuing that she has failed to realise any new deal for almost ten days. However, she refuses to keep pace with the miserable magnesium ingot market on the basis of the demand steadiness at home and the higher production cost of her magnesium alloy. “I bought some ingot at least RMB300/t (USD48/t) ex works higher,” remarked she, “so I’d make little money if I’d ratcheted down my offer too quickly.”
A Shanxi magnesium alloy producer with an output of 2,000tpm admitted having reduced his quotation by RMB100/t (USD16/t) ex works in the light of the unceasing price reduction in magnesium ingot. “The material got another RMB100/t (USD16/t) ex works cheaper yesterday after it went down by RMB100/t (USD16/t) ex works in price last Friday,” recalled the source, adding that magnesium ingot has become available at RMB16,800-16,900/t (USD2,670-2,786/t) ex works in Shaanxi now. Therefore, he follows suit with a quotation markdown by RMB100/t (USD16/t) ex works to RMB19,300/t (USD3,067/t) ex works with his baseline restricted to RMB19,200/t (USD3,051/t) ex works.
He further explained the reason for the retarded price markdown in his circle that multitudinous counterparts are utilising their backups bought at a high price in comparison with the current one. Aware of the constant price decline in magnesium ingot, he intends for replenishment postponement in expectation of a more favourable price. “I’ve been looking on for long, and downstream buyers keep watching the alloy market too,” pointed he, who denies having achieved any new transaction since the beginning of December.
His local peer with a monthly output of 1,200t has lowered her offer by RMB100/t (USD16/t) ex works in view of the startlingly rapid price decrease in magnesium ingot too. “The material dropped by RMB100/t (USD16/t) ex works in price last Friday,” said she, “and it glided by another RMB100/t (USD16/t) ex works yesterday.” In order for consumers’ attention, she starts to draw the line at RMB19,200/t (USD3,051/t) ex works after a price reduction by RMB100/t (USD16/t) ex works now.
“I’d to bring down the price since most buyers are lying in wait for the bottom price,” judged the smelter, continuing that she has failed to realise any new deal for almost ten days. However, she refuses to keep pace with the miserable magnesium ingot market on the basis of the demand steadiness at home and the higher production cost of her magnesium alloy. “I bought some ingot at least RMB300/t (USD48/t) ex works higher,” remarked she, “so I’d make little money if I’d ratcheted down my offer too quickly.”
Magnesium Alloy AZ91D FOB China
Unit:USD/mt
China magnesium alloy producers' suspension number statistics by month
Unit: pcs
