China’s fused magnesia export price hits two-year low
Published: Tuesday, 09 July 2019
The downtrend in the Chinese magnesia market continues, on high stocks and low demand.
Increasing stocks and weak demand continued to weigh on
China’s fused magnesia market in the week ended
Friday June 7. Most producers lowered their prices to boost
sales and cash flow in a flat market, leaving fused magnesia
prices at their lowest level in nearly two years.
Fused magnesia prices have been on a downtrend since
entering 2019 due to high stocks and slow buying activity.
Additional flotation production lines for fused magnesia in
Dashiqiao, Liaoning province, have increased supply and
accelerated the price decline.
The reducing demand from the downstream refractory sector is
another factor behind the decreasing fused magnesia price.
Refractory output has fallen so far this year, with
production hubs such as Henan and Shandong provinces subject to
strict environmental inspections and more local refractory
companies suspending production.
China’s total output of refractory materials
was 4.21 million tonnes in the first quarter of 2019, down by
11.53% year-on-year, according to data from the China
Association of Refractories.
"Fused magnesia prices keep falling this year on sufficient
supply. Overseas buyers are in no hurry to buy material and are
expecting lower prices. Magnesia prices have increased in a
large range since late 2017 due to mining restrictions on
magnesite - the raw material for magnesia - and I think current
prices are falling back to a reasonable level," a trader told
Fastmarkets’ assessment of the price of
magnesia, fused, 96% MgO, lump, fob China, was $600-700 per
tonne on June 4, widening downward from $650-700 per tonne in
the previous week and hovering around the level of $580-620 per
tonne last seen in the middle of 2017.
Fastmarkets’ assessment of the price for
magnesia, fused, 97% MgO, Ca:Si 2:1, lump, fob China was
$850-950 per tonne on June 4, down from $900-1,000 per tonne
the week before and near the $800-900 per tonne level in July