Magnesium powder market improves slightly
2009-07-21 08:35:46 【Print】
BEIJING (Asian Metal) 21 Jul 09 – Sources reported to Asian Metal that the demand for magnesium powder improves a little both domestically and overseas. Some magnesium powder producers increase output to some extent, though most of them are still running below their capacities.
A Shanxi-based magnesium powder producer reported that they received slightly more orders from domestic consumers this month so that the company’s magnesium powder output in July may increase to more than 200t while it only produced around 100t every month in the second quarter.
“The domestic steel market warm up a little, bringing in some positive impacts on magnesium powder market,” said the source. Meanwhile, the source reported that demand from their overseas customers has not changed much. The company has been selling 30-40tpm of magnesium powder abroad in the past several months.
The source sold several batches of magnesium powder at RMB16,500/t (USD2,416/t) delivered to customer, with RMB200-400/t (USD29-59/t) for transportation cost early this month. As the magnesium ingot price has risen by RMB200-300/t (USD29-44/t) since the end of June and the source worries that the magnesium ingot price may rise further, the company starts to offer RMB16,500/t ex works for the material.
“I wish that the magnesium powder market had gone through the most difficult time and would turn better step by step,” said the source.
A Henan-based producer also felt that the magnesium powder market turns better. “We have received slightly more orders from foreign customers since June,” said the source, who had almost sold no magnesium powder abroad in the first five months of this year.
Meanwhile, the source said that the magnesium powder market is far from robust, citing that most producers are still running below their capacities. Additionally, the changeful magnesium ingot price also leads to risks for magnesium powder producers who have to purchase magnesium ingot as raw material.
The source confirmed that the magnesium ingot price has risen to RMB15,200-15,400/t (USD2,225-2,255/t) ex works. In view of current magnesium ingot price, the price of magnesium powder should be at or above RMB16,500/t (USD2,416/t) ex works. “We made some purchases of magnesium ingot at lower prices, and the material can meet our demand for production till late August. We will be cautious about replenishing materials,” said the source, adding that the magnesium ingot price is likely to move up further by a small margin during summer when the production is usually low but may go down again when the weather cools down.
