Intermittent production issues are starting to have an effect on Chinese export prices for fused magnesia, while caustic calcined and dead-burned magnesia are holding for the moment. Meanwhile demand for European material is on the rise, according to market participants.
Fused magnesia (FM) export prices out of China rose, following a steady increases in domestic prices.
China’s domestic FM prices have been on the rise this year to date due to a number of reasons, including the ongoing environmental inspections of local production processes, limited use of dynamite for mining activities, lack of magnesite ores out of Haicheng and government’s requirement on higher stripping ratio, among others.
FM domestic prices have risen over 20% this year, according to IM sources.
While producers believe that tight supply might continue until H2, they also believe that prices will keep growing, both for domestic sale and exports.
Specifically in FM, which requires first grade or special high-grade magnesite ores, the small amount of output and inventory may push FM prices further upwards.