Magnesium market is in a bad mood after price reached around USD6,000-6,100/t in warehouse Rotterdam at the middle of June and suddenly started to slide, and this week sources in Europe told Asian Metal that they can buy material at around USD4,400-4,500/t in warehouse Rotterdam while offers from Chinese suppliers are at around USD4,200/t FOB China.
Prediction in the market now is that price will continue to go down as demand of magnesium all over the world remains scanty and bearishness in the market will last since many consumers confirmed plenty material in their possession.
According to a European trader who told Asian Metal that he sold material last week at USD4,420/t in warehouse Rotterdam, all signs show that price will still go down further because there are some Chinese suppliers holding plenty material and will likely to get rid of them because of the decreasing price.
"Chinese suppliers will find it difficult to increase the price again in a short time," said the source. "I am not saying they can not do it, but it will take sometime."
Another European trader agreed that it may take up to end of the year to see the price of magnesium going up again because plenty material in the market will not allow a sudden price increase.
"None of my customers want to buy now," said the source. "All of them are saying they have material and will buy again probably at the end of the year." The source predicted that price may go below USD4,000/t FOB China before end of the this quarter.
Prediction in the market now is that price will continue to go down as demand of magnesium all over the world remains scanty and bearishness in the market will last since many consumers confirmed plenty material in their possession.
According to a European trader who told Asian Metal that he sold material last week at USD4,420/t in warehouse Rotterdam, all signs show that price will still go down further because there are some Chinese suppliers holding plenty material and will likely to get rid of them because of the decreasing price.
"Chinese suppliers will find it difficult to increase the price again in a short time," said the source. "I am not saying they can not do it, but it will take sometime."
Another European trader agreed that it may take up to end of the year to see the price of magnesium going up again because plenty material in the market will not allow a sudden price increase.
"None of my customers want to buy now," said the source. "All of them are saying they have material and will buy again probably at the end of the year." The source predicted that price may go below USD4,000/t FOB China before end of the this quarter.
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