The northeastern Chinese province is a hub for magnesite
mining and processing, with the ports of Dalian and Yingkou the
two main harbors shipping the mineral overseas.
Authorities have extended the period for business closures
in Liaoning to February 9, as similar measures have been taken
in other areas of the country as a precaution to contain the
spreading of the novel coronavirus epidemic, which originated
in China’s Hubei province in January.
Market sources in contact with Fastmarkets today said the
extension of the closures in Liaoning will cause delays for
magnesia orders that were lined up for shipments next week.
"Land logistics are down so [local sellers]
can’t move material to the port. Also cargo
inspections are not possible; that means delays," one trader
handling Chinese magnesia said.
A second Europe-based distributor said that he was expecting
interruptions of scheduled shipments for "at least the next 10
The local ports of Dalian and Yinkgou remain open for the
time being but, with land logistics unavailable to deliver the
sea bound cargo to the terminals, few volumes are expected to
be shipped out in the immediate term.
"Usually the material is not [kept] at port;
it’s in the warehouse and is shipped to the
container terminal once the vessel is nominated," one source
Some stock may be held at the Bayuquan bulk terminal at
Yingkou port, although availability of that remains unclear at
Prices of magnesia products have been falling throughout
2019 due to slumping demand from refractories end markets,
Fastmarkets' price assessment of magnesia, dead burned, 97.5% MgO, lump, fob
China was $400-450 per tonne on January 21, down from
$1,100-1,300 per tonne at the start of 2019.
Fastmarkets' price assessment of magnesia, fused, 97% MgO, Ca:Si 2:1, lump, fob
China was $520-620 on January 21, down by more than
50% from $1,250-1,350 per tonne at the start of 2019.