The businesses in Liaoning were acting on
government instructions to delay the reopening of businesses in
the most of the country to February 10 at the earliest in
response to the coronavirus outbreak which has infected over
The Chinese magnesia market has
been stagnant since before the Lunar New Year holiday that
began on January 24. Most market participants have not returned
to work and and China’s domestic transportation
network has ground to a halt.
As a result,
price for magnesia, dead burned, 90% MgO, lump, fob China
was stable week on week at $170-200 per tonne on Tuesday
February 4, unchanged since November 5, 2019. The magnesia,
dead burned, 97.5% MgO, lump, fob China price was unchanged
at $400-450 per tonne on February 4, a level it has maintained
since December 17.
Most market sources said they are awaiting
clearer direction on price after February 10, when operations
are currently expected to resume.
resumed production for the moment, and our customers currently
have no specific requirements on booking materials as well.
China’s government is taking measures to control
the coronavirus, and I believe it will all return to normal
soon," a producer in Haicheng told Fastmarkets.
"Our customers currently
haven’t placed new orders and all waiting for
clear direction. They haven’t noticed any specific
requirements on exporting materials, and we will see that the
market is after February 10," a second producer
Meanwhile, a trader source was
bearish on the effect of the coronavirus on an already weak
"I think the coronavirus will
have a negative impact on the short-term magnesia market as it
makes the weak market worse with most downstream sectors
slowing down purchasing," a trader said.
The magnesia market has had a
sluggish year with prices falling sharply due to oversupply and
reducing demand from downstream buyers. The 90% dead burned
magnesia price was $240-270 per tonne at the start of 2019,
while the 97.5% assessment was at $1,100-1,300 per tonne at the
same time. China’s producers have continued
lowering prices to boost sales and cash flow, bringing spot
Adding to this, magnesia orders
after the Lunar New Year have not met forecasts due to the
suspension of business.