The Platts weekly magnesium ingot (minimum 99.8%) assessment was rangebound at $2,600-2,630/mt FOB China Thursday, unchanged from a week earlier, amid lackluster spot trade.
Spot export offers for Chinese magnesium ingot were rangebound from a week earlier at $2,600-2,650/mt FOB, while domestic ex-works prices slipped about Yuan 100/mt, market participants said.
"Our ex-works prices have dropped to Yuan 15,500/mt [$2,535] this week, compared with Yuan 15,600/mt last week, as demand is very slow and all Chinese companies want to conserve cashflow now as the Lunar New Year holidays draw near," a Shanxi producer said.
A Shaanxi producer agreed, adding that "ex-works prices here are now at Yuan 15,000/mt, down from Yuan 15,100/mt last week."
However, the producers said the lower domestic prices have yet to impact export levels, as they only marginally lower. But prices are likely to edge down another Yuan 100-200/mt in January as the market will likely remain slow in the lead-up to the Lunar New Year.
When domestic prices drop further, FOB offers will follow, both producers said.
A Japanese trader said Thursday he received an offer this week for January delivery at $2,630/mt FOB, but was not buying as the market was in a holiday mood and he also expected prices to fall further in January.
China is expected to close for the Lunar New Year holiday from January 31 to February 6, 2014.
Meanwhile, Chinese magnesium diecast alloy prices were unchanged week on week Thursday at $2,880-2,940/mt.
A Chinese seller said alloy buyers were mainly based overseas and "most of them are on holidays now."
