Japan Traders Accept 50-60 yen/kg Higher Magnesium for Jul-Sep

Price negotiation concluded between Japanese major traders and overseas magnesium producers for July-September shipment to raise the price by 50-60 yen per kilogram from previous quarter period. Japanese traders’ purchasing price maintained uptrend. To follow the upsurge, the traders’ reselling price for domestic market increased to 310-340 yen per kg for magnesium and to 350-390 yen per kg for magnesium alloy.Magnesium producers’ selling price surged up for July-September shipment when magnesium productive costs such for fuel and personnel increased in China, where 80% of world magnesium supply concentrates and domestic magnesium demand has increased. Another background was that a large producer in Canada withdrew from magnesium smelting in March 2007. Overseas magnesium producers offered US$ 2,600-2,700 per tonne to Japanese major traders for July-September shipment under the conditions, higher by US$ 500-600 from previous quarter. Some producers seemed to put off the export tax in advance which is expected to be introduced by Chinese government in October 2007. Magnesium is used mainly as an additive for aluminium. In Japan magnesium demand is stable for aluminium alloy which is actively applied into automobiles.