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China’s dead-burned magnesia (DBM) prices showed a slight increase due to Haicheng province's consolidation plan for its magnesia industry being moved forward.
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Key takeaways from the 61st International Colloquium on Refractories, held September 25-26 in Aachen, Germany
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Refractory products have been included in the list of materials subject to a new US tariff, and China’s refractory industry is recommending an ‘active’ response. Although refractory raw materials were not included this time, demand for these will be affected indirectly in the long term.
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Most delegates seem to agree that prices for raw materials, including bauxite, alumina, magnesia and graphite, will continue at high levels with small fluctuations.
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Attendees discuss how market participants will secure supply for the coming year, and how prices are expected to perform going forward.
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China's unshaped refractory materials output rose in August, supported by the strong demand downstream.
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China’s domestic magnesia prices edged up due to stricter environmental regulations, while export prices stood still ahead of China’s National Day holidays.
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The former chief financial officer of Anglo Platinum, Ian Botha, will replace Octavio Pereira Lopes in the role at RHI Magnesita next year.
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Chromite market still quiet at Q3-end; Antimony metal price drives trioxide prices upward; China's magnesia prices firm on strict environmental inspections; PRICING NOTICE: Launch of frac sand price; Ilmenite price range widens downward in China, defying expectations; Industrial Minerals to track prices in booming frac sand market
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Magnesia production hubs in China are continuing their efforts to reduce negative environmental impact, while domestic magnesia prices firm and export prices hold steady on low demand.
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Graphite, magnesia, alumina and silicon carbide are excluded from the list of China-origin materials subject to a new US tariff, as are antimony, rare earths and barite. Pigments such as titanium dioxide will also be subject to the duty, as will refractory finished products, some ceramic minerals such as kaolin, and lithium.
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Haicheng's consolidation plan for its magnesia industry has made progress, with 42 companies to be consolidated at first, while magnesia prices temporarily hold steady.
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Many major minerals could be affected if the US goes ahead with a plan to raise the import tariff on China-origin materials as the trade war between the two countries gathers pace.
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Authorities in China’s magnesia production hub of Dashiqiao have shut down 87 local companies that did not meet new environmental standards. But despite this, China’s magnesia export prices stood still on thin buying.
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The central government is gearing up to impose fresh restrictions on industrial output during the winter months, which are likely to curtail mineral production and processing as they did in 2017.
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China’s magnesia market remained quiet, dragging mid-grade magnesia prices lower after suppliers cut their offer prices to achieve sales.
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Prices of fused and caustic calcined magnesia in Europe have remained flat on low availability, but raw magnesite ore prices have edged upward.
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Chinese magnesia export prices fell on sluggish trade and the lower value of the yuan against the dollar, while stockpiles gradually increased despite the ongoing mining restrictions.
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The refractories maker posted rises in sales and volumes to both industrial and steel end markets, and is investing in raw material assets and optimization of production lines.
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Increasing demand for refractory materials pushed China’s refractories output up to 9.45 million tonnes in the first half of the year. Magnesia and graphite prices remained firm because of the knock-on effects of environmental regulations.
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Several Chinese magnesia prices trended lower on soft demand and quiet buying activity. High-grade magnesia in particular saw price declines from several-month highs.
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The Trump administration has asked its trade authorities to consider a 25% import duty rate on Chinese minerals rather than the 10% rate it officially proposed in July.
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The new company - RHI Magnesita India - will be better positioned to expand its presence in the Indian refractories market, which has significant growth opportunities while steel capacity develops and local companies innovate.
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The refractories producer managed to offset the rise in raw material costs while it achieved higher turnover and profits.
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The prices of China’s magnesia exports were stable this week because of quiet buying during the summer slowdown, but domestic prices were on a downtrend, especially for low-grade products.
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China's customs department will introduce a much stricter system that local exporters and importers must follow to carry out international trading.
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The US/China trade war is heating up, and industrial minerals are in the firing line.
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An uncertain outlook for magnesia products, financial losses and the burden of environmental regulations have put a price tag of $4.2 million on Haicheng Xinwei Lee Shing Magnesia Resources.
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Sluggish demand, cheaper material weigh on China’s battery-grade lithium carbonate prices; Haicheng government set to dismantle polluting MgO kilns, but magnesia prices steady for now; European titanium dioxide prices down under heavy imports; Fluorspar market split on extent of China's environmental controls; Producers see higher soda ash prices on strong demand; Rutile prices increase, Tronox to cease external rutile, leucoxene sales by 2018 end; Silicon carbide production shutdowns in China push up European refractory prices; Have zircon prices peaked? Global antimony trioxide markets weaken, European prices stable
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The local government of Haicheng in China’s Liaoning province has announced a plan to dismantle magnesia kilns which do not meet the latest environmental standards. But Chinese magnesia export prices are currently unchanged on quiet buying activity.
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The government of Haicheng in China’s Liaoning province has ratified a consolidation plan for the local magnesia industry aimed at streamlining a fragmented sector. For now, though, magnesia prices are steady this week in quiet buying conditions.
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Demand for magnesia is set to increase steadily over the next few years given growth in downstream sectors, IHS Markit predicted.
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The company aims to secure its supply chain by offering fully integrated dolomite production in China.
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China’s output of refractory materials has risen to 7.80 million tonnes in the first five months of 2018, supported by increasing demand from downstream sectors.
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China’s magnesia export prices are unchanged after the Dragon Boat Festival holiday (June 16-18) due to limited buying interest, with most buyers holding off and waiting for a clear market direction.
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Here are some takeaways from the 24th IM Congress 2018 in Barcelona, Spain, that took place over June 5-7.
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China’s magnesia export prices remained at current level without any fluctuation on thin buying activities from buyers. Market participants kept monitoring the market waiting for clearer direction on releasing the restriction on magnesite mining.
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Companies in the industrial minerals sector have lamented the current difficulties in planning and sourcing because of the continuing disruptions to export flows out of China of minerals such as bauxite, alumina and graphite, with the industry disheartened about prospects for a return to normal any time soon.
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Demand for magnesia is set to increase steadily over the next few years given growth in downstream sectors, IHS Markit predicted.
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Local authorities' plans to consolidate regional sector over the next four months have yet to have any discernible effect on local magnesia prices
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Increasing demand for some refractory materials and increasing output compared with last year pushed China’s refractories output to 4.76 million tonnes in the first quarter of the year, the first rise for two years.
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The Finnish group’s takeover of Magnohrom comes concurrent with unrelenting tightness in the magnesia market.
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China produces mineral commodities that are among the most widely used in the refractories, abrasives and pigments sectors, and is continuing its drive to improve the environmental profile of its heavy industry, as well as preparing for further restrictions on local operations.
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Export prices for all grades of Chinese magnesia remained stable this week, despite the declining availability of spot materials, because magnesite mining has been halted since mid-April.
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Strong demand for refractories from both steelmaking and industrial customers supported business in the first quarter and helped offset higher prices in mineral raw materials.
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Shipments of all grades of magnesia were down in March, compared to March 2017, on thin buying interest from international buyers.
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The East Asian country, which produces some of the most widely used mineral commodities in refractories, abrasives and pigments, is persisting with its drive to improve the environmental profile of its heavy industry, and is gearing up for further restrictions on local operations.
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Reduced demand weighs on Chinese domestic spot lithium carbonate prices; Strong carbonate, hydroxide monohydrate prices in China boosting spodumene prices in Q2; Upcoming holiday restricts Chinese graphite prices; seaborne antimony trioxide market softens amid depressed demand; chemical grade chromite price holds despite volatile UG2 prices; PRICING NOTICE: Discontinuation of diatomite; Chinese magnesia prices steady on halt in magnesite mining; PRICING NOTICE: Discontinuation of vermiculite prices
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The stoppage to magnesite mining in Liaoning province continued this week, and with no confirmed news on when a restart will happen, magnesia export prices were unchanged on quiet buying activity.
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The subsidiary of France-based Roullier takes full ownership of the Spanish magnesia producer after 18 years of joint ownership with Grecian Magnesite, at a time of tightness in the global magnesia markets.
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