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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (27064)	10/8/2008 7:17:22 PM
From: LoneClone	Read Replies (1) \| Respond to of 193970

Chinese magnesium ingot offer prices drop after Chinese holiday Hong Kong (Platts)--6Oct2008 platts.com Offer prices for Chinese-origin magnesium ingot were mostly on a downward trend quoting at $3,900-3,980/mt FOB China following the week-long national holiday, industry sources said Monday. Prices were down compared with $4,000-4,100/mt quoted late September. The China market was closed from September 29 to October 5 for National Day holiday. One China-based trader said current offer prices were heard quoted at slightly below $4,000/mt. "We have just come back to work after the holiday. They are not selling any spot material but prefer to wait for more market direction. Our material is sold mostly based on long-term contracts within a price range of $4,000-4,050/mt." Another trader agreed, adding that prices would continue to be suppressed by weaker overseas demand affected by the global financial crisis. A source from China Magnesium Association added that the market was still weak with offer prices mostly quoting at $3,900-3,980/mt FOB China. "We heard that China customs had canceled the floor price set earlier just before the Chinese holiday," he said, citing that weak market sentiment was the reason behind it. "Coal prices are also coming down and hence costs for producing magnesium are lower," he added. China Customs' floor price on magnesium export was previously set at $4,500/mt FOB China, material delivered at Tianjin port. The floor price was a move to protect the government and secure the tariff while China Customs changed their floor price based on market conditions. The CMA source also noted that some magnesium plants in China were offering mostly at Yuan 23,400-23,800 ($3,425-3,484)/mt ex-plant. The first trader added: "There is very little profit margin selling magnesium now." --Wendy Shair, wendy_shair@platts.com