Japan Mg Users Agree with Chinese Refineries in $200 Higher Price for Jul-Sep

Japanese magnesium traders and users concluded quarterly price negotiations with Chinese magnesium refineries at around CFR US$ 3,180-3,210 per tonne for July-September. The price surged by around US$ 200 from April-June. Japanese traders and users decreased the purchasing volume when they have inventories or order backlogs under weak economy trend. Chinese magnesium refineries in the areas other than Shaanxi Province are apparently suffer worse profitability when the market price remains low.

In Shanxi Province where magnesium production had been most active in China until 5-6 years before, many refineries have been shut down or forced much output reduction. Then the refining cost is said at US$ 3,250 or more. In Shaanxi Province, the current center of Chinese magnesium production, the refineries can gain profit even at the recent magnesium market price since they produce magnesium as by-product of cokes or ferrosilicon.

Japanese major magnesium trader source analyzes major refineries in Shaanxi are controlling magnesium output volume and market price, cautiously watching production cost of the refineries in Shanxi.