1 Aug 08 – The magnesium export price goes down further due to lack of consumer demand. Suppliers worry that the price may continue to slip in August when most European buyers are absent for summer holidays.
A Shanxi-based smelter has not concluded any export deals since early July and reported that only two or three tentative inquiries have been received. "We don't bother to make offers as we're aware that foreign buyers have no intention of buying," said a sales executive from the smelter.
The source offered at USD4,500/t FOB Tianjin last week without any deals concluded and reported that most suppliers have decreased offers to USD4,300-4,400/t FOB this week. However, the source revealed that little activity is seen in the export market.
Meanwhile, the source reported that the domestic market also remains dull with prices sliding down slowly and steadily. It is hard for them to sell magnesium ingot at RMB25,800/t ex works for now. The smelter is running at less than half of its capacity of 10,000tpy at the moment.
A Beijing-based trader confirmed the sluggish market for export and was surprised to receive a counter bid as low as USD3,800/t FOB China made by a Korean buyer. "Such a bid is far lower than USD4,300/t FOB China, which is the lowest price we can accept now," said the source.
The source reported that demand from Europe, Japan, Koran and India is very weak. Many dealers have ceased buying as their customers do not place orders with them.
A major Ningxia-based producer echoed that few foreign buyers are in the market. The source has reduced offers from USD4,400/t FOB early this week to current USD4,300/t FOB, but buyers still show no interest.
A Shanxi-based smelter has not concluded any export deals since early July and reported that only two or three tentative inquiries have been received. "We don't bother to make offers as we're aware that foreign buyers have no intention of buying," said a sales executive from the smelter.
The source offered at USD4,500/t FOB Tianjin last week without any deals concluded and reported that most suppliers have decreased offers to USD4,300-4,400/t FOB this week. However, the source revealed that little activity is seen in the export market.
Meanwhile, the source reported that the domestic market also remains dull with prices sliding down slowly and steadily. It is hard for them to sell magnesium ingot at RMB25,800/t ex works for now. The smelter is running at less than half of its capacity of 10,000tpy at the moment.
A Beijing-based trader confirmed the sluggish market for export and was surprised to receive a counter bid as low as USD3,800/t FOB China made by a Korean buyer. "Such a bid is far lower than USD4,300/t FOB China, which is the lowest price we can accept now," said the source.
The source reported that demand from Europe, Japan, Koran and India is very weak. Many dealers have ceased buying as their customers do not place orders with them.
A major Ningxia-based producer echoed that few foreign buyers are in the market. The source has reduced offers from USD4,400/t FOB early this week to current USD4,300/t FOB, but buyers still show no interest.
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