Japanese industry expects the magnesium ingot price could be higher after the price increased by 7-8% to around 280 yen per kilogram in April-June from January-March. The price is likely to keep firm when the largest supplier of China could impose tariff. Chinese magnesium production cost increases with higher coal price and labor cost. The high cost increases the Chinese magnesium export price. The export price could keep firm when Chinese suppliers have to invest for environmental facilities and the government could introduce tariff. The tariff could increase Chinese export price of magnesium ingot. Japanese industry expects when world industry depends on supply from China, Chinese government doesn’t impose such wide tariff as 15% for aluminium ingot. The higher magnesium ingot price could lift the production cost for Japanese light metal rerollers, which use magnesium as additive for aluminum. The rerollers could increase the rolling charge to cover higher cost.
Japan Steel Scrap Composite Prices (Sangyo Press)
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