Magnesium demand boosts spot prices

Sep 11, 2013 | 01:52 PM | Michael Cowden

Tags  magnesium, contract negotiations, spot prices, contract prices, aluminum, UBCs, nonferrous scrap, secondary remelter

CHICAGO — U.S. magnesium spot prices have inched up thanks to strong automotive demand and a tight nonferrous scrap market, which has bolstered secondary aluminum producers’ demand for magnesium.

As some secondary aluminum producers run through 2013 magnesium supplies faster than expected, several contracts for 2014 have been negotiated earlier than usual, market sources said.

AMM’s spot magnesium price range has widened to $1.85 to $2.25 per pound from $1.84 to $2.22 previously.

"We’ve already signed a couple of arrangements for next year," one producer source said. "I would think that based on that the rest of the contract season will start earlier than it usually does." Customers to date have paid the same or more for 2014 material compared with this year, he said.....

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