Asian Metal News
Domestic magnesium prices bounced back to RMB 21,700~22,000/t ex-works by cash this week after a rapid fall of nearly RMB 1,000/t – led by falling raw material prices – last week. Industrial commentators forecast domestic magnesium prices to keep stable at the current level next week buoyed by increasing demand.
A northern smelter is reluctant to sell at any prices less than RMB 22,000/t given that prices had previously fallen rapidly by RMB 5,000/t. Magnesium supply in Fugu fell as 14 local smelters were forced to suspend operations and 6 cut operations due to the semi-coke furnace retrofitting policy. The smelter sold 100 t of magnesium at RMB 22,500/t and 60 t at RMB 21,500/t on Monday.
In view of easing inventory pressures, less price competition among smelters and improving downstream demand, industry commentators forecast prices to continue stable at the current level this week.