CHICAGO Spot magnesium
prices have slipped in recent weeks as market participants
expressed concern about supply outstripping demand in most
regions of the world.
magnesium price has dropped to between $1.88 and $2.22 per
pound from between $2.00 and $2.25 previously.
Spot business has been thin in a
domestic market generally characterized by long-term supply
agreements, industry players said. But some also said prices
had been trending downward in spot deals they had
"We see prices coming down a
little bit," one consumer said. "It seems that capacity is
growing at a faster clip than demand, and as more capacity
comes online there is downward pressure on price."
The one exception might be
China, where domestic consumption appears to be up, the
consumer said. But even in China, prices are coming down, a
trend that the rest of the world generally follows, he
A trader questioned the notion
that demand anywhereeven in Chinamight be good.
"Nothing is happening. (Its) dead as a proverbial
doornail, whether youre talking Europe, China or
America," he said. "Usually somewhere is exciting. But now
its tediousbeyond tedious."
The trader agreed that a global
supply glut was likely behind the dip in prices and in spot
But one producer source strongly
disagreed with those market assessments. "Our business right
now is really good. Our demand is very strong," he said but
added that prices for his firm are largely based on fixed-price
annual contracts and that he had not been involved in the spot