Fastmarkets' new European magnesia prices track shifts in market dynamics
Published: Wednesday, 15 May 2019
Fastmarkets IM's new European fused and dead burned magnesia prices better reflect the current shape of the market.
Fastmarkets IM has launched new magnesia
prices to better reflect the market for this refractory mineral
China remains by far the largest producer
of most refractory materials, including magnesia. Fastmarkets
tracks developments in this market with its range of fob China
But Chinese supply has not been completely
reliable in recent years. An increased focus on pollution
controls leaves many Chinese mineral companies vulnerable to
sudden restrictions and shutdowns. As a result, consumers are
increasingly looking for alternative sources.
The launch of the new fused magnesia price
reflects shifting trends in the magnesia market, and is
intended to leave more flexible assessments that can take in a
wider range of price inputs, increasing liquidity and
These fluctuations in supply come even as
magnesia continues to gain ground as a refractory material in
the European steel industry, which itself is in a period of
As demand for dead burned magnesia in
Europe increases, a number of companies are beginning
production of dead burned magnesia, or switching existing
calcined or fused magnesia capacity to dead burned.
Fastmarkets is launching its new dead
burned magnesia price to reflect this trend.
Additionally, Fastmarkets is launching a
new fused magnesia cif Europe price to reflect the fact that a
large majority of fused magnesia consumed in Europe is imported
A large proportion of magnesia production
in Europe is based in Russia and Turkey, and incurs significant
freight costs when sold in western European markets.
The cif Europe fused magnesia price will
further allow for the inclusion of new origins entering the
market, as long as they conform to the Fastmarkets
This cif price is intended to replace the
existing fob Europe fused magnesia price,
whose discontinuation is under consultation.
Click here to see details on the new prices.
The first assessment of the new prices
will be made on May 21, and the third Tuesday of every month