Magnesium spot prices tick upwards
Jun 11, 2013 | 09:57 AM
| Michael Cowden
CHICAGO Magnesium prices have inched up slightly in a thinly traded U.S. spot market, but sources disagree about whether the market, traditionally largely under contract, is healthy or whether a lack of spot activity might be a worrisome signal.
AMMs spot magnesium price range strengthened to $1.90 to $2.25 per pound from $1.88 to $2.22 previously.
One producer source said his company had recently booked one truckload of spot business, or roughly 20 tons, at $2.25 per pound, a number he said was roughly flat compared with previous spot transactions.
"The fundamental reason behind the (price) stability is that more than 95 percent of volume is under contract," he said. "And even if a contract customer needs more volume, all he does is move forward on his contract until he runs out." That generally doesnt happen until November or December, which is when the magnesium market could see an increase in spot market activity and prices.....
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