[+/-] : Magnesium ingot market softening

Magnesium ingot market in China is showing some signs of softening after stabilizing for over one week. Weak demand is still considered as the key factor affecting the price, market sources reported to Asian Metal today.
A Henan-based trader, with a trading volume of 800-900tpm, has just purchased some magnesium ingot at RMB23,500/t (USD3,436/t) ex works while most smelters insisted on offers at RMB23,800-24,000/t (USD3,480-3,509/t) ex works last week. The source heard that some smelters reportedly undersold magnesium ingot at prices below RMB23,500/t (USD3,436/t) ex works and said that they would like to purchase some if one can offer such low prices.
"Although we feel that the current price is relatively low, it seems that it still has not touched the bottom line," said the source. "Judging from the current situation, we're afraid that the price may continue to go down by a small margin before the National Day."
A Shanxi-based consumer confirmed that the magnesium ingot price is going down mildly. According to the source, although smelters have been trying to keep the price stable or even push it up in the name of more inquiries in the last two weeks, few deals buyers placed orders after they got offers from smelters. "Therefore, the seemingly active market has not seen good deals."
The source bought tens of tons of magnesium ingot at a price lower than RMB23,800/t (USD3,480/t) ex works last week and said that the same supplier had lowered the quotations by RMB100-200/t (USD15-29/t) this week to promote sales. "We were shocked that some smelters in Fugu and Taiyuan sold out stocks at RMB23,000/t (USD3,363/t) ex works last weekend," said the source, "but the prevailing price was still higher than RMB23,600/t (USD3,450/t) ex works."
Consuming about 600t of magnesium ingot every month, the smelter mainly purchases raw material from Shanxi province. The source predicts that the magnesium ingot price is likely to decline further this week, but the price decrease is expected to be limited in view of the high-held production cost.
One of largest magnesium producers in Taiyuan, Shanxi suspended offering as the company does not want to sell any material at prices lower than RMB24,000/t (USD3,509/t) ex works. However, the source acknowledged that the market demand has kept weak and bids from buyers have also been in decline. Meanwhile, the source revealed that many coke producers reduce production due to the sluggish market, leading to short supply of coal-gas which affects the production of some magnesium ingot smelters. Nevertheless, the production reduction is expected not to exert any impact on the magnesium market in the face of weak demand.

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[+/-] : manganese flakes price seems to be further down

There seem to be further weakening of manganese flakes price this week, but it is to early to say categorically because the week is just beginning. Though many sources still think price remains unchanged at USD3, 700/t in warehouse Rotterdam, there is a reported offer from China in the range of USD3,500-3,600/t CIF Rotterdam, and if the offer is true then the price in the warehouse Rotterdam might dip to around USD3,600/t. The picture of the market will be clearer as the week runs off; meanwhile, the market is still quiet as demand continues to decline.
A trader source informed that prices are coming down due to less demand from stainless steel industry, Chinese are offering below USD3,800/t CIF Rotterdam for shipment while in Europe price is around EURO3,700/t in warehouse Rotterdam. Some suppliers are decreasing price in line with the market situation. The source sold material last week and is yet to see any changes in the market this week.
Another trader source that shared similar view about the market of manganese flakes said the price is still USD3, 700/t in warehouse Rotterdam but cannot comment on the market now because he is quiet to receive any enquiry this week.
A third trader source also in Europe said manganese flake price is now in the range of USD3, 500-3,600/t CIF Rotterdam for prompt shipment. The source sold some undisclosed tonnage of flakes at below USD3, 900/t delivered to customer, which is around USD3, 750/t in warehouse Rotterdam. He also confirmed the market demand is weak and there is still room for further decline in the price.

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[+/-] : European antimony trioxide market sees no activity

Lack of demand, European antimony trioxide market remained quiet this wee.
A European trader disclosed that he received an offer of 99.5%min antimony trioxide at USD5,480/t FOB China. "I think this is too expensive, and I will discuss with the producer see if I can get at least USD30/t decrease," said the source.
He disclosed to Asian Metal that European market had been very quiet lately that he had not even received one inquiry in the last few days. "Things are not going well; we will have very bad impact from American economy soon, and demand of many commodities will not be strong," the source remarked pessimistically.
Another trader confirmed the weak market in Europe that he also received no inquiry this week and offers received for both in warehouse and CIF Rotterdam had dropped. According to him, the price is around USD5,600/t in warehouse Rotterdam, and USD5,500-5,550/t CIF Rotterdam, but consumers are not interested.
He thinks that the weakening economy is driving all metal market down at the moment, and it is difficult to see price recovers this year. "There is not many supply from China because of Olympic Games, but demand in Europe is even fewer," said the trader.

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[+/-] : Magnesium ingots,Magnesium alloys prices stable in China

Magnesium ingot market is stable but quiet presently with buyers and sellers all holding back from moving. The material is being offered at RMB24,000-24,300/t (USD3,509-3,553/t) ex works while the concluded price is considered to be in a range of RMB23,800-24,000/t (USD3,480-3,509/t) ex works.
A Shanxi-based producer reported to Asian Metal that the magnesium ingot market has not changed much this week. "Neither buyers nor sellers want to make a concession to each other, so they are watching the market closely for the time being," said the source.
The source puts the mainstream concluded price of magnesium ingot at RMB23,800-24,000/t (USD3,480-3,509/t) ex works, but revealed that many smelters would not like to sell at prices below RMB24,000/t (USD3,509/t) ex works. The source does not think the market will go robust soon, though there are more inquiries coming from foreign buyers who are just testing the market. However, the possibility that the price may drop further by a large margin can be ruled out given the high-held production cost.
Running below its capacity of 10,000tpy, the smelter has not concluded any deal this week.
A producer from South Shanxi confirmed that the magnesium ingot market comes to a standstill as producers refuse to lower their prices further while buyers think the there is still room for the price to go down.
Owing to the sluggish market, the smelter, with a capacity of 5,000tpy, halted production a week ago. It has sold all the stocked materials at prices ranging RMB24,000-24,200/t (USD3,509-3,538/t) ex works. "We received some inquiries from end users, so we intend to buy some magnesium ingot from other smelters in the local area," said the source. "However, some local smelters quote as high as RMB24,400-24,500/t (USD3,567-3,582/t) ex works, which keep us away from buying."
AAccording to the source, due to the increasing price of coal and the bearish coke market, some smelters in Taiyuan, Shanxi have also been forced to reduce production due to high cost or lack of coal-gas. In addition, smelters in South Shanxi are still out of production. Therefore, the stock of magnesium ingot in Shanxi is not so high as it was last month. "Coupled with more inquiries, the magnesium market may keep comparatively stable in the following one or two weeks," the source added.

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[+/-] : Some manganese flakes suppliers sell hurriedly

Due to the low expectation on the manganese market after the National Day, some suppliers are selling in panic and manganese price drops further to almost USD3,600/t FOB, but many suppliers are still reluctant to sell at around RMB19,200-19,500/t (USD2,803-2,847/t) ex works in domestic market.
A Hunan-based smelter claimed that they just concluded a deal at USD3,950/t CIF Pusan. "The buyer just wants two cargos of the material for prompt delivery," said the source who has planned to lower the offers to USD3,850/t CIF Pusan but before they made the adjustment, the buyer has decided to make the deal. "Actually, manganese demand is a bit strong at the moment with many foreign buyers back to place orders." The source still owns about 100t of the material at hand and they might lower their offer further to release the huge stockpiles.
The source reported that some suppliers have already lowered their offers to almost USD3,650-3,700/t CIF Rotterdam. "The overall economic trend is very dim, and thus many smelters would rather strive for some deals even at much lower prices."
Another Hunan-based smelter who just runs at half of its capacity of 12,000tpy told Asian Metal that though some smelters are still reluctant to sell at prices below RMB20,000/t (USD2,920/t) ex works, some others have already lowered their prices to RMB19,200/t (USD2,803/t) ex works at the lowest. "It is expected that the price might fall to below RMB19,000/t (USD2,774/t) ex works," said the source who is very pessimistic about the stainless steel market in the fourth quarter of the year.
The source claimed that they received routine inquiries from the foreign buyers but they are not interested in selling at prices below USD3,700/t FOB. "However, the buyers could still get the material at much lower prices," said the source who complained that due to the low price at around USD3,700/t in warehouse Rotterdam, no foreign buyer would be willing to purchase at prices above USD3,650/t CIF Rotterdam for the moment.

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[+/-] : Magnesium ingots,Magnesium alloys market has not changed in Europe

At the start of business on Monday, sources reported that magnesium market has not changed from its quiet position with steady price at round USD4,200-4,300/t in warehouse Rotterdam. Speaking on the reason for the steady price, participants attributed it to price of around USD4,150-4,200/t CIF Rotterdam from Chinese suppliers.
A trader told Asian Metal that he got offers of around USD4,300/t in warehouse Rotterdam from another trader trying to reduce stock, but will not buy the material since his customers are not showing sign of buying anything now.
"Any consumers you contact will tell you that they have material and are not ready to buy now," said the source. "I guess that is a way to pay Chinese suppliers for increasing the price higher than expected this year."
However, the source expressed surprise that the price is not going down as expected since it is still at around USD4,200-4,250/t in warehouse Rotterdam and added that price may remain at this level till next quarter.
The market is not showing a positive picture from the participants perspective because many of them lack confidence on the future, insisting that price is heading to around USD4,000/t in warehouse Rotterdam.
"There is nothing to show the market is going to be active in warehouse Rotterdam," said another European dealer who offers at around USD4,300/t in warehouse Rotterdam. "The sentiment is that price is going down and they will wait to see the bottom."
The source reported he got offers from Chinese suppliers at around USD4,100-4,200/t CIF Rotterdam, same as he got two weeks ago, showing that Chinese suppliers are not reducing the price very fast.

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[+/-] : European antimony trioxide prices drop in US Dollar

16 Sep 08 – Because of the slow demand, prices of antimony products continue to fall in the Chinese export market. However, the European market participants holds that the prices are falling in US Dollar, but still expensive in EURO.
An official from a European consumer disclosed to Asian Metal that the price of 99.5%min antimony trioxide further to slightly below USD5,600/t CIF Rotterdam, but exchange of EURO had dropped from the highest 1.58 against USD to current 1.40-1.42. "Compare the 2-3% dropping in the antimony trioxide price with the 10% decrease of currency, the antimony price is mostly paid in USD, and we are paying more," the official remarked.
The source sees the supply of antimony is tight in the world market. However, he added: "the demand is even shorter." He takes that the reasons for the weak demand are weak economy in general and the possibilities of using alternatives.
A trader disclosed to Asian Metal that the price of antimony trioxide is softening, and market is very quiet at the moment. According to him, the offers from China fall to the range of USD5,600-5,650/t CIF Rotterdam from USD5,700/t CIF a week ago. "No deals I heard concluded in Europe, so cannot give a price for prompt material in Rotterdam warehouse."
AsiHe agrees that some consumers are paying more for the raw material when they pays in EURO, and antimony is a products which is dealt in USD most of the time.
He holds that economy is very slow in Europe, and also calm down in Asia, so demand of antimony trioxide is not going to pick up for the rest of the year. "Antimony market will just remain quiet for the next few months," said the trader, pessimistically.

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[+/-] : Gossan's Inwood magnesium property hosts 28.8 million measured tonnes of high-purity magnesium dolomite

Gossan Resources Limited has received a final National Instrument 43-101 Report that establishes a substantial resource of high purity dolomite at its Inwood Magnesium Project. The resource estimate focuses on the flat lying Fisher Branch dolomite formation which outcrops on the Inwood Property with little or no overburden and averages a true thickness of about 12 metres. Gossan has initiated preliminary site and infrastructure planning for a production facility at the 1,635-hectare Inwood Property which is located in south-central Manitoba.

Development of the Inwood Magnesium Project is being advanced based on ongoing high magnesium prices – currently over US $2.00 per pound – and the development of more efficient magnesium extraction processes. Gossan holds the option on the worldwide rights to a new high-efficiency modified magnesium production process and testing of this technology is the current focus of this project.

Douglas Reeson, CEO of Gossan stated, "Gossan recently exhibited at the World Magnesium Conference in Warsaw, Poland, where it was very apparent that a new North American producer would be strongly supported by the magnesium industry. Gossan's Inwood Project, located in hydro-electric rich Manitoba – has all the ingredients to attract a senior partner to assist in its development."

Watts, Griffis and McOuat Limited (WGM), consulting geologists, have calculated a number of Mineral Resource Estimates for high purity dolomite at the Inwood Property. WGM estimated Measured and Indicated Mineral Resources based on results from 35 drill holes, of which 27 were conducted on 200m spacing within a 100-hectare area in May of 2006. The balance of the holes used in the estimate of the Measured and Indicated Resource were drilled in 1991 by the Manitoba Department of Mines and Energy. The estimate of Inferred Resources which covers an area of approximately 450 hectares is based on a 53-drillhole database.

The Inwood Property hosts a very-large, high-quality deposit as the final Measured Resource alone would be capable of sustaining a very substantial production facility of 80,000 tonnes of magnesium per year for about 30 years (subject to a positive feasibility study).

WGM's resource estimates for the Fisher Branch are summarized in the table below:

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                          Resource                   Grade           Grade

Formation and zone  Classification      Tonnage   MgO (wt%)       CaO (wt%)
 
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Fisher Branch             Measured   28,819,000     21.15%          30.91%

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Fisher Branch            Indicated    5,057,000     21.40%          30.66%

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Fisher Branch             Inferred  131,236,000     21.64%          30.51%
 
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Gossan has received a final National Instrument 43-101 Report from Watts, Griffis and McOuat on the Inwood Property. The Company had previously reported initial resource estimates, conducted by WGM, on the Property (NR 06-16 dated November 3, 2006). The final Report utilized a more sophisticated block modeling technique and reflects the elimination of certain core intersections, partially outside the mineralized zone. As a result, the reported purity of the deposit was improved with total residue for the Fisher Branch resource being reduced to 0.34 % from 0.40%. This improvement may be of significance in future metallurgical and economic evaluations. The total resource remained basically unchanged, but due to the use of more sophisticated block modeling, a small portion of the tonnage shifted from the measured to indicated category.

Donald Hains, P.Geo., of Watts, Griffis and McOuat is the Qualified Person who prepared the technical report on the Inwood Magnesium Property and has reviewed and approved the contents of this press release. The NI 43-101 Report will be filed with SEDAR.

Gossan has a licensing arrangement for a new high efficiency magnesium production process being developed by Douglas J. Zuliani. The new process is based on an efficient adaptation of the traditional Magnetherm process. The Zuliani process is designed to achieve operating cost savings by process efficiency improvements that significantly reduce both energy and key raw material requirements. These enhancements to the traditional Magnetherm method should materially improve both magnesium recovery and silicon reduction efficiency without the need for a vacuum. Energy use is reduced by development of a technically straightforward method that will ensure highly efficient condensation of liquid magnesium metal. Low cost hydro electricity is abundantly available in Manitoba. For further information refer to Gossan NR-07-02 dated March 16, 2007.

In order to prove out the technology prior to commercialization, Gossan is undertaking a three phase evaluation process. Initially thermodynamic modelling was successfully used to verify the process fundamentals (NR-07-13 of September 25, 2007). The second phase which will involve bench scale testing is currently being prepared at the CANMET Materials Technology Laboratory in Ottawa (NR-08-05 of May 13, 2008). Thereafter a third phase of pilot plant testing will be required to demonstrate commercial viability. Gossan will seek a joint venture partner to assist in the pilot plant testing and subsequent commercialization of the process.

Gossan has selected the CANMET Materials Technology Laboratory (CANMET-MTL) of Ottawa, Canada, to conduct bench scale testing of the Zuliani Process to extract magnesium metal from dolomite. CANMET-MTL is undertaking several bench scale tests to confirm process thermodynamics and kinetics for the Zuliani technology including determining the vapour pressure of magnesium as a function of process temperature and operating conditions, the slag – metal reactions and the formation of by-products. Equipment required to conduct the bench scale tests has been designed and is in the process of being fabricated. A bulk sample of up to 5-tonnes of dolomite is being extracted at the Inwood Property for use in the current and future tests. Additional dolomite is being sourced from other commercial operations for inclusion in the current bench scale tests in order to broaden the testing of the technology. The bench scale tests are expected to be completed before year end.

The price of magnesium has increased considerably since 2006. During 2007, free market prices in Canada and Europe increased sharply from US $0.95 per pound to US $1.80 per pound. The current price – early September 2008 – is US $2.07 per pound. Corresponding prices in the USA are significantly higher due to varying tariff protection against certain Chinese and Russian producers. An analysis of operating and transportation costs indicates that the cost to produce and ship magnesium from China – the world's dominant producer – has increased significantly over the last two years, and as a result, magnesium prices are likely to remain firm. Demand for magnesium is expected to remain strong particularly from the auto industry where high gasoline prices are leading to the design of lighter more fuel efficient vehicles.

Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, tantalum, lithium, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite, the world-wide rights to the Zuliani magnesium production process, and a silica sand deposit. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 29,020,900 common shares outstanding. – Press Release

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[+/-] : Brazil's Magnesita buys Germany's LWB Refractories

Brazil's Magnesita SA says it will pay €277 million in cash and stock to buy LWB Refractories, a German company that makes products used in the steel industry.

Magnesita said the purchase will turn it into the world's third largest producer of refractory material. Refractory material capable of resisting super-high temperatures is used by industries that in installations like furnace linings and thermal barriers.

Magnesita said its deal to buy LWB from Rhone Capital also includes the assumption of €380 million in debt and that the conclusion of the deal is subject to regulatory approval.

The Brazilian company is controlled Brazilian private equity firms GP Investments Ltd. and Gavea Investimentos. – Associated Press

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[+/-] : China magnesium quarterly price to drop to US$ 4,100-4,200/t level

Japanese and European magnesium buyers are expected to get lower price from Chinese suppliers for October-December shipment at the negotiation started last week.

The price is likely to be US$ 4,100-4,200 per tonne, which is US$ 1,900 lower than July-September level.

The price in China, which represents 80% of world supply, hit bottom and rebounded to US$ 4,200 level while the price decreased to US$ 4,100 last week, according to Japanese trader sources.

The price is apparently supported by high refining cost despite of the easy supply. – Japan Metal Bulletin

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[+/-] : China releases ferroalloy export license application procedure

China releases ferroalloy export license application procedure
According to the procedure released by Ministry of Commerce ferroalloy exporters can submit application for export license from September 1st.

For ferromanganese, ferrosilicon and silicomanganese, the government will only allow ferroalloy exports by producers that supplied more than 3,000 tonnes for export in 2007. For trade houses as well, only those that shipped more than 3,000 tonnes abroad in 2007 will be allowed to export.

For other ferroalloy products there is no export volume threshold so far.

Ferroalloy exporters can hand in applications to provincial departments from Sep 1 and the applications should be submitted to MOC before Oct 15. MOC will list the qualified enterprises before this year end.

Export license will be effective as of January 1st 2009.

MOC said in a statement on August 21st that China would set restrictions on exporters of ferroalloys and citric acid starting from September to reduce exports of the products, aiming to promote industry consolidation and curb pollution.

China has been increasing controls over exports of metals, minerals and chemical products as it aims to prevent excessive, unchecked expansion in high-polluting sectors. – Steel Guru

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[+/-] : Tariff break extended on Chinese ferroalloy

The European Union delayed for an extra 12 months the introduction of tariffs on a ferroalloy from China and Kazakhstan, prolonging relief for the EU steel industry.

The EU suspended duties as high as 8.2 per cent on silicomanganese, used by steelmakers including ArcelorMittal, until Sept. 6, 2009, because prices of the raw material remain "high." Last December, the EU postponed the levies for nine months because supply shortages reduced the risk that European silicomanganese producers would be hurt by "dumped," imports.

The EU is trying to strike a balance between the interests of European ferroalloy producers such as Spain's Ferroatlantica SL and users including Luxembourg-based ArcelorMittal. Ferroalloy association Euroalliages has demanded duties to punish non-EU exporters for dumping while the Eurofer steel group has said such trade protection raises costs. – Toronto Star

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[+/-] : China's non-ferrous sector downbeat for 2nd half

China's nonferrous metals industry will remain downbeat in the second half of this year, with rising costs and weak consumption, according to a report by the China Nonferrous Metals Industry Association (CNMIA) released July 17.

CNMIA's pessimistic estimate is based on a range of internal and external factors. By and large, increasingly expensive raw materials, labor and electricity are pushing up production costs, while downstream consumption will remain slack, hindered by a weakening global economy, an appreciating Renminbi and government export restrictions, the CNMIA said.

Regarding the prospects of the nonferrous metals industry in the second half of this year, CNMIA estimates that output will continue to grow, with combined production of 10 major nonferrous metals, namely copper, aluminium, lead, zinc, nickel, tin, antimony, mercury, magnesium, and sponge titanium, expected to increase by approximately 15% year-on-year.

According to the report, Chinese nonferrous metal producers generally saw their profits slide during the first five months of this year, and this trend is likely to continue into the latter half of the year thanks to growing production costs and falling prices.

Due to a market surplus in the first half of the year, the prices of lead, zinc, aluminum and nickel all suffered falls, and the CNMIA is not optimistic about the situation changing in the second half.

The report indicated that the total volume of imports and exports of nonferrous metals will also continue to slide, while the trade deficit is set to expand.

In addition, a report on the country's nonferrous metals industry released by the National Development and Reform Commission (NDRC) on July 14, said that combined profit growth for 73 major producers and traders of nonferrous metals in the first four months of this year decreased by 7.25% on an annual basis, and that a growing number of smelters are losing money.

The NDRC is considering taking counter-measures to ease the situation, according to the report.

Interfax commentary: Output of various nonferrous metals in China has been an issue which has made headlines in the lead up to the summer. Suggestions of production cuts for aluminum, lead and zinc have been been aired, only to be rejected as being unlikely to follow through. Whatever the NDRC's counter-measures may be, a weakening global economy and weakening demand from the globe's biggest consumer are suggesting that there is only one long-term answer to the surpluses of various metals – that market forces will have to be allowed to play their role, eliminating production when low price creates too tough an environment for all but the strongest players. – Interfax

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[+/-] : Antimony trioxide export market dips in China

10 Sep 08 – Chinese exporters reported few deals with the concluded price decreasing. Participants believe it is the reasonable for the adjustment of the market itself as buyers have purchased a lot in the past months.
A large South China-based trioxide smelter stated that they quote USD5,600/t FOB China for antimony trioxide 99.5%min, and the deals could be concluded at USD5,500/t FOB China, down from USD5,600-5,700/t FOB China two to three weeks ago.
The source revealed that it is very difficult to conclude deals at USD5,600/t FOB China for famous brand materials. He puts the mainstream price for all kinds of antimony trioxide at USD5,400-5,500/t FOB China this week, down by around USD100/t from two weeks ago.
Another large South China-based trioxide smelter reported several deals at USD5,500/t FOB China, down from the last deal of USD5,600/t FOB China in the end of August. "The market has been very quiet in the recent two weeks and the price decreased by around USD100/t from two weeks ago," said the source, believing that it is reasonable for the price to go down as buyers has purchased a lot in the usual quiet season in July and August. However, they still hold stocks on hand. Therefore, there are fewer inquiries from buyers now than in August.

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[+/-] : Chinese antimony trioxide market drops

10 Sep 08 – Chinese antimony market drops this week as buyers stay away from the market and stop making purchases because they believe the market is going to decrease further.
An export enterprise supplier reported deals of antimony trioxide 99.5%min with exporters at around RMB37,000/t down from RMB37,000-37,500/t several days ago. The price for domestic sales is at around RMB37,200-37,300/t for the same grade materials, down from RMB37,500-38,000/t two weeks ago.
The source said, "The market is very quiet this week and we received fewer inquiries this week than last week." She believes that the market may decrease further slightly in the near future as according to her, buyers find the market is decreasing and may not come back to the market within two weeks. Where the market will go in the future depends on buyers demand for the trioxide material.
A Hunan-based smelter with a monthly production capacity of around 300 tons reported around 50 tons of antimony trioxide early this week concluded at RMB36,500-37,000/t.
The source puts the mainstream price of all grade antimony triode at RMB36,500-37,500/t at present. She confirmed that the market is decreasing but they find that it is difficult to get antimony ingot again. Therefore, the source believes that the market may increase slightly due to the above mentioned reason.

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[+/-] : Producers: Magnesium ingots market to stabilize

9 Sep 08 – Producers believe that the magnesium ingot market is leveling off after the price falls from RMB36,000-36,500/t (USD5,263-5,336/t) ex works early June to current RMB24,000-24,500/t (USD3,509-3,582/t) ex works which is close to the production cost. However, they are not confident in saying that more activity will be seen in the market in the rest of this month as most consumers still have little interest in purchasing.
"I don't think the magnesium ingot price will drop further; otherwise, more producers who will run at a loss may have to shut down," an official from a Shanxi-based smelter said to Asian Metal.
The source currently holds the quotation higher than RMB24,500/t (USD3,582/t) ex works but no deal has been concluded since early this month. The source acknowledged that more deals were reportedly concluded at RMB24,100-24,300/t (USD3,523-3,553/t) ex works during the past week and also heard of the low price of RMB23,800-23,900/t (USD3,480-3,494/t) ex works that appeared in Fugu, Shaanxi.
The smelter is running with an output of around 700-800tpm and the expansion project is underway. Its total capacity will reach 15,000tpy after the new furnaces are put into production in October. Considering that more new smelters or expansion projects will put into production soon, the source predicts that the magnesium market will keep low in the rest of this year with prices fluctuating around the production cost.
A major Ningxia-based producer with a capacity of 1,500tpm reported a concluded deal at RMB24,200/t (USD3,538/t) ex works. The source revealed that the company is focusing on domestic sales, and no export business has been closed over the past several weeks as most foreign buyers shunned the market.
The source also believes that there will be little room for magnesium ingot price to go down further in view of the increased production cost. "The current price is approaching the bottom line, so smelters will try their best to prevent the price from going lower," said the source.
With a stock of 200-300t, the source also takes a negative expectation on the future market, believing that situation of oversupply is likely to keep up to the fourth quarter.

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[+/-] : Manganese flakes export market sees stronger demand

9 Sep 08 - Manganese market sees stronger demand from foreign buyers when most of them have been back from vacation, but the offers from Chinese suppliers remain low at the moment.
A Hunan-based supplier who offers USD3,800/t FOB told Asian Metal that they received many inquiries these two days. "One Spanish buyer inquiried 150t for manganese ingot, to be delivered late this month and another Germany trader asked for two cargos of manganese flakes to be delivered in early October," said the source who still holds some stocks at hand. The source claimed that the low prices might attract more foreign buyers to place orders. "And the buyers also need to consider purchasing raw materials for their production in the fourth quarter this year or early next year."
The source claimed that some suppliers might be willing to offer much lower prices at the moment to release part of the stocks. "No one is sure how the future market would go even if demand slightly goes stronger," said the source. "And some deals in larger quantities are concluded at prices of around USD3,750-3,800/t FOB."
Another Hunan-based trader also received some offers from foreign buyers. "Our offer is around USD3,850t FOB," said the source who thinks the price very workable for them at the moment. The source does not expect the market to move down further. "Even if the profits keep dropping, we believe more smelters would cut down their production to reduce supply, which may lead to a stable market if not a upward one."
AThe source claimed that many foreign buyers woulld just leave aside very small stocks at hand and might have to return to the market for some material. "Thus demand of the market might increase though it may not be strong," said the source who blames the slowing down global economy for the sluggish manganese market.

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[+/-] : Manganese flakes export price keeps dropping

4 Sep 08 - Manganese suppliers have cut down their offers significantly due to the remaining stagnant demand in both domestic and export markets. The export quotation has been low at around USD3,850/t FOB for the moment while still few foreign buyers are interested till the moment.
A Hunan-based exporter confirmed that they received very few inquiries recently. "Most foreign buyers have been back from vacation but they are inactive in purchasing for the moment. They are hesitant to purchase for the moment and the orders are mostly in very small quantities of just one to two truckloads," said the source who has already lowered their offers to around USD3,800/t FOB from USD3,900/t FOB late last week. However, no reply has been received yet.
The source claimed that they have still not booked out the output in September and thus they are eager to conclude some deals. "But many buyers keep some stocks at hand and they are in no hurry to purchase at the moment when the market is still low and the price keeps dropping." The source believes that current manganese price has almost touched the bottom line and the price might stop sliding while most exporters get slim profits at such low price and the Customs still fix quite high price floor.
Another Guangxi-based smelter has booked out most of its products this month. "We signed some big deals at around RMB21,000/t ex works and just leave aside 300t of the material by the end of this month," said the source who also lowered their offers to USD3,950/t CIF Rotterdam from USD3,950/t FOB early this month. "Some buyers claimed that they could find some prices of around USD3,900/t CIF Rotterdam, which we could barely get any profits."
The source expects manganese demand to go up in the middle of the month when more consumers would place some orders for the material to be delivered in the last quarter of the year. "However, as the overall market is slowing down, the manganese market might be no exception. Our only wish is that the market would keep stable at current level or many domestic smelters might cut down or halt production again," said the source who reported that the domestic manganese price drops to around RMB20,000/t (USD2,924/t) ex works.

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[+/-] : South Korean buyers away from magnesium ingot market

5 Sep 08 - Consumers and traders continue to stay away from the magnesium market in South Korea. Activity is not expected in the coming one or two weeks, sources reported to Asian Metal.
A trader from South Korea described the magnesium ingot market as asleep, citing that only two or three consumers have made tentative inquiries during the past two weeks without any deals concluded. "We feel that the demand is still there, but consumers are all holding on for lower prices," said the source.
The source received offers of USD4,100-4,150/t FOB China from regular suppliers in China but has no intention of buying as no good inquiries came recently. Furthermore, the source heard that some Chinese suppliers could offer as low as USD4,000/t FOB China, so he thinks that offers he received were not so practical.
Another Korean trader confirmed the static market and also expressed the concern about the future market conditions. "We find ourselves in a predicament," said the source, further explaining that major Chinese suppliers stick to the offers of USD4,150-4,200/t FOB China while consumers are talking the price down to USD3,850-3,900/t CIF Korean main ports.
"Our suppliers told us that the price floor policy issued by Chinese customs is affecting the magnesium exports. Combined with the high-held cost, they won't lower offers further," said the source. However, the source still dares not place an order without seeing solid demand in the local market.
According to the source, the company used to sell more than 500t of magnesium ingot per month, but only concluded two or three small deals in the past one month. The source does not think the market will warm up in September seeing the current weak demand.
Meanwhile, a third trader claimed that they just bought a container of magnesium ingot at USD4,000/t CIF Korean main ports, believing that the market is reaching the bottom and there is little room for the price to go down further.

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[+/-] : Russian antimony ingot price runs at high levels

3 Sep 08 - Participants expressed even though the demand is low, the price of antimony 99.65%min remains stable at the high level of RUB200-205/kg (USD8062-8263/t),unchanged from last week.
Some local traders do not know what to do about the high price. They revealed some traders have quoted above RUB210/kg (USD8464/t), but most deals are concluded at RUB200-205/kg (USD8062-8263/t).
A smelter in Russia quotes RUB207/kg for antimony 99.65%min. He stated that there are few inquiries from consumers. Consumers are watching the market. Therefore, few deals are concluded at present.
"Few deals are concluded due to the low demand. We may lower our quotations in order to sell the metal in bulk," he said. In addition, China is a large producing country of antimony and has a say in the pricing of antimony products. Some traders and consumers in Russia imported antimony from China. Therefore, the current high quotation of Chinese antimony ingot is one of the most important reasons of the highly stable price in Russia. The smelter's monthly production volume is around 60 tons.
A trader in Russia said the mainstream price of antimony 99.65%min remains stable at RUB200/kg (USD8062/t), unchanged from last week. He quotes RUB205/kg (USD8263/t) this week, down by RUB2/kg (USD80/t) compared with that of last week. However, he has not concluded any deals so far. In view of the current condition, he believes the price of antimony may go down slightly in a short time.

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[+/-] : No improvement in magnesium ingots market

3 Sep 08 – Market participants told Asian Metal that there was no improvement in magnesium market conditions, with difficulties increasing in sales. Many of them seem reluctant to look too far into the future.
A Shanxi-based smelter reported that the magnesium market has been inactive, and buyers show little interest in purchasing. "Some buyers have indeed been inquiring, but they did nothing except asking for a price," said the source.
Due to the weakened demand, the smelter, with a capacity of 12,000tpy, has reduced production by half. It has no stock at the moment, but is still under great pressure of sales. "Considering the high production cost, we're reluctant to sell magnesium ingot at prices below RMB24,500/t (USD3,582/t) ex works, but no buyer accepts such a price," said the source, adding that they sold small quantities of magnesium ingot at around RMB24,300/t (USD3,553/t) ex works early this week.
A trader from Sichuan just purchased around 40t of magnesium ingot from a Shaanxi-based smelter at RMB25,000/t (USD3,644/t) delivered, with RMB800/t (USD1,17/t) for transportation cost. "The price has not changed much this week, but the magnesium market is still very weak," said the source, citing that they usually sell 120-150t of magnesium ingot to end users in the local market whereas the total trading volume in July and August was less than 80t.
The source mainly supplies manufacturers of magnesium alloy and aluminum profile. Due to the price hike in the first half of this year, many magnesium alloy producers switched to produce aluminum alloy, and aluminum profile producers reduced consumption of magnesium ingot.
The source said it is still too difficult to predict the market in the rest of the year, but believes that more activity will be seen in the spot market in the fourth quarter as long as the magnesium prices keep comparatively stable.

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[+/-] : Manganese flakes market falls down in Asian markets

1 Sep 08 - Manganese market falls down in Asia though more buyers were expected to enter the market after the summer holidays. Demand of the material remains stagnant and few deals are concluded at current prices of around USD3,900-3,950/t FOB.
A South Korean trader claimed that they have already booked some materials in the middle of August, purchased at around USD3,950/t CIF Incheon. "Actually, many downstream consumers still have some stocks at hand, and they keep pressing the price down," said the source who reported that due to the lower prices in China domestic market, the suppliers lowered their offers to slightly below USD3,900/t FOB at the moment.
The source expects more buying activity in the middle of this month while as the supply also increases gradually, the source thinks the price might fail to rebound. "The overall market is no in good shape this year and the consumers use fewer manganese products this year."
The source complained that the gradually booming manganese briquette market is another reason for less manganese demand. "The much cheaper price attracts more traders and consumers to transfer to this material," said the source.
Another Japanese trader who also keeps some stocks at hand told Asian Metal that the price they get from Chinese suppliers are dropping at the moment. "The offer we receive now is at around USD3,850-3,900/t FOB, compared with USD3,900-3,950/t FOB in the last week," said the source who still has no intention of replenishing some stocks.
The source also deals in some manganese briquette, whose price is around USD3,400/t FOB for the moment. "Manganese market is sliding with few materials purchased from China while the supply keeps increasing, so we think the price might fall further in the coming weeks," said the source who reported that the European and Asian Markets still see large stockpiles at hand. "Some buyers are purchasing, but they just want to buy materials for prompt release."

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[+/-] : Manganese flakes market summary Aug 25-29

1 Sep 08 - Manganese market remains dull in the last week of August. Sources reported to Asian Metal that with the supply slightly recovering, manganese price starts to slide down while demand in both domestic and foreign markets keeps weak for the moment.
ASome domestic traders are about to replenish some stocks before the consumers enter the market but they refused to accept the higher prices of around RMB20,800/t (USD3,045/t) ex works. So some suppliers have to accept lower prices once they are in need of cash for turnover. More deals are concluded at relatively lower prices of around RMB20,600/t ex works. Some buyers claimed that they managed to purchase some material in the week at much lower prices of around RMB20,400/t ex works from suppliers who could still enjoy some profits and on top of that, some smelters have to reduce their stocks as they fail to conclude many deals for September.
Manganese demand keeps weak for the moment. Many foreign and domestic consumers still have some materials at hand purchased before the Olympics. And the consumers are still not satisfactory at current price level of around USD3,900/t FOB and RMB20,600/t (USD3,016/t) ex works while demand of stainless steel is also low and the profits are very low. There are some bids reported this week in Europe and South Asia but the price is not attracting at all at below USD3,900/t FOB. Some small deals were concluded during the week at prices of around USD3,950/t FOB but most exporters failed to get such a good price. Many of them are willing to sell at the price of USD3,900/t FOB but received no reply from the foreign buyers. Manganese briquette price is around USD3,400-3,450/t FOB in the week and the price might decrease slightly with manganese price falling in domestic market.
Manganese flakes price is around USD4,000-4,100/t in warehouse Rotterdam in the week with demand remains sluggish. More consumers and traders are interested in manganese briquette but they are in no hurry to purchase at the moment while the overall market trend is softening.
The price floor in some major Customs remains high at around USD3,900/t FOB for manganese flakes and USD4,000/t FOB for manganese ingot. Some exporters who concluded deals before August failed to get through the Customs smoothly and have to pay extra tax due to the high price floor, which adds to the export cost and reduces the profits.

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