China Q1 magnesia exports hit record high as values plunge
Published: Friday, 09 June 2017
Exports from January continued to increase; CCM, DBM volumes hit record highs; average value saw steady decline
The value of exported magnesia, including calcined caustic
magnesia (CCM), dead burned magnesia (DBM), fused magnesia
(FM), dropped over 20% year-on-year in
March, while the quantity of material exported has risen,
following the scrapping of the export quota in January.
CCM and DBM, in particular, have reached record high export
Holland, Japan and the US were the top three destination
countries for every kind of magnesia product.
Calcined caustic magnesia
In March, exports of CCM from China hit historical records,
reaching 71,140 tonnes, up 207% y-o-y and 162% month-on-month.
The average value meanwhile has dropped from $189/tonne in
December 2016, down to $162/tonne in January, $145.63/tonne in
February and $126.71/tonne in March. Compared with March 2016,
the average price has dropped 39.2% y-o-y.
|China magnesia exports January 2016-March
Dead burned magnesia
Similarly, DMB exports in March also hit levels not seen
since December 2014, reaching 100,190 tonnes, up 111% y-o-y and
66% m-o-m. The average value of DBM exported, meanwhile, has
dropped 24.63% and 24.52% since December and March 2016
respectively, to $182.05/tonne in March.
The average price of FM exported in March was at a similar
level to February but was still 27.7% lower y-o-y at
$383.89/tonne. The average price was also over $100 cheaper
than December 2016 levels. Quantities of FM exported on the
other hand, were fewer than January.
This upward trend may not continue in Q2 due to the
production stoppage in Liaoning (see p18), the main
producing area in China. It remains unclear when production
will come back online, several China-based contacts told