International Magnesium Price Levels Off

The international magnesium price is leveling off. A Japanese dealer source said the export price of Chinese magnesium is around CIF US$ 5,600-5,800 per tonne, which downed by US$ 500-700 in these 2 weeks from the recent peak. However, several dealers expect the price would not continue declining.Global demand for magnesium is remarkably weakening. Most magnesium consumers in Japan and Europe finished the procurement for July-September by early June with concerns about Chinese magnesium supply regulation. Additionally European market entered the summer holiday season in mid June.A Japanese dealer source said magnesium makers are expected not to decrease the selling price more because the makers gained much profit thanks to the price up since the second half of 2007. Higher productive costs for ferrosilicon and coke support the market price as well.