Magnesium ingot market stable

BEIJING (Metal-Pages) 10-Jan-11.  The magnesium ingot market has remained stable on the back of price confidence by most smelters, said market dealers.
99.9% grade magnesium ingot has been sold at RMB16,500-17,000/tonne ($2,496-2,571/tonne before 5% export duty) in the domestic market, without change over the past two weeks.
“We sold 200 tonnes of magnesium ingot at RMB170,000/tonne ($2,571/tonne before 5% export duty) late last week and do not plan to cut offers any further, since we have no stock pressure,” said an executive at a smelter in Shanxi, reporting that the company has only around 300 tonnes in stocks currently.
A source at a Shaanxi-based smelter reported that the company sold some material at RMB16,600/tonne ($2,511/tonne before 5% export duty) today. “I think smelters will keep current offer levels for a few more days, since there are no pressures on stocks and production costs, although market transactions are not active,” the source said.
The export market, meanwhile, has seen not seen any improvement over the last past three weeks, due to a lack of purchases from overseas buyers, with prices hovering at $2,810-3,010/tonne FOB.
“Because of firm domestic prices, some low offers have been withdrawn. Most export offers are now at more than $2,900/tonne FOB,” a Shanxi-based trader reported. But he said that it would be hard to see a pick-up in the export market in the short term as there is weak demand from overseas consumers.

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