Chinese magnesium prices have leveled off after a month-long increase, with consumers “well covered and showing little buying interest,” Metal-Pages reported on August 26. The week of August 19 to 23 saw 99.9-percent magnesium trading in the range of RMB 16,400 to 16,700 a tonne.
That compares to RMB 14,600 to 15,100 a tonne at the end of July.
“Market activity has slowed as end-users have retreated after finishing purchasing,” a Shanxi-based producer said.
Magnesium, as well as other minor metals and alloys used in auto production, such as ferromanganese, ferrosilicon, antimony, cadmium, vanadium and molybdenum, has seen a recovery this summer primarily due to an increase in car sales in China.
In Europe, magnesium is up $25, to between $2,775 and $2,825 a tonne, on the spot market, Metal-Pages said on August 21, although prices are expected to stabilize in coming weeks. The publication notes that the European magnesium market is still at a four-year low, off a peak average of $3,325 in January, when China abolished export duties on magnesium metal.
The US magnesium market has been slow all summer, with “consumers living off contract agreements as they try to keep inventories to a minimum,” Metal-Pages said on August 21. The US price of magnesium, 99.9-percent delivered, held in a range between $1.85 and $2.20 a pound, unchanged from the end of July.