Magnesium offering prices up in India but domestic price keeps stable

Magnesium price in Indian domestic market remains stable at around INR130-135/kg, while CIF price went up to around USD3,050-3,100/t CIF Mumbai port, from USD2,950-3,000/kg sold last week and sources believe the price will continue to go up.

According to participants, most deals this week were concluded at the higher side of the price level of around USD3,100/t CIF Mumbai port and the stable price of around INR130-135/kg in the local market was attributed to the fact that some traders still have old stocks.

A source who concluded a deal of USD3, 070/t CIF Mumbai port, up from USD3, 050/t CIF Mumbai port sold last week, agreed that price will continue to go up as tight supply will continue to drive the price to the sky.

"I think Chinese suppliers are trying to achieve around USD3,500/t CIF Mumbai port by the end of the year but I do not think they will reach that level because consumers are fed up of week-on-week price increase," said the source. "I do not foresee much price increase before end of the year.

Another source reported a deal at USD3,100/t CIF Mumbai port, USD70 higher than his last deal, believing that price will not go down in a short time because material is still in short supply and Chinese suppliers are not eager to sell at this moment which will continue to help to push the price higher.