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With the present concluded prices staying steady at RMB19,900-20,200/t (USD3,139-3,186/t) ex works, the magnesium alloy market proceeds to move slowly with transaction difficult. Sources explained to Asian Metal that the tardy movement derives from the dreary downstream business.
A Shanxi magnesium alloy smelter with a monthly output of 700t reported to Asian Metal that he has stricken no deals since 1st September under the circumstances of the traditional demand languor at home and the weakening purchasing capacity abroad. With no transaction consummated at this moment, he feels little intention to procure magnesium ingot as the material either.
“We mostly bid RMB20,000-20,200/t (USD3,155-3,186/t) ex works, unchanged for long,” remarked the source, continuing that the material cost them RMB17,800-18,000/t (USD2,808-2,839/t) ex works which has seen an increase by RMB100/t (USD16/t) ex works in the past few days. “I can’t give in to an even lower price on account of a reasonable profit,” explained the smelter, who cannot but witness tardy transactions in the market originating from the dull downstream business. “Majorities of domestic buyers come from die-casting and profile industries,” said he, “but they hardly buy any from me these days since they’ve still enough goods in the stock.”
A local magnesium alloy consumer with a monthly consumption of 20t complained about his dingy business with few deals settled. “Our car parts can be used in various scopes, but few buyers ask for them,” groused the source, who makes no determination to purchase any magnesium alloy for normal production either.
Moderate as RMB19,900-20,200/t (USD3,139-3,186/t) ex works remains, he regards it useless to procure some as back-ups currently. “Buyers frequented us for goods when the economy was favourable, but now they mostly turn me down,” commented he, whose dismay at the current economic situations both at home and abroad was extended. “I won’t consider buying alloy unless I’m in need of it,” insisted the consumer, adding that their requirement for magnesium alloy is apparently associated with the downstream requirement for their products.