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The magnesium market appears to be in pricing disarray. Buyers reported the February price average was $2.38/lb in North America, down from $2.24 in January. However, Metals Week and Magnesium Monthly Review are reporting early March sales prices in a wide range of $2.20-$2.70-an average $2.45-for 99.8% pure metal.
The metals trade publications also say that die cast alloy is selling in the same general price area while secondary alloy such as 90/10 is lower at $1.80-$2.00/lb. Interestingly, most market analyses are centered on the recent erratic nature of early-March pricing with little explanation of supply or demand trends that might be influencing the prices.
U.S. demand for magnesium dropped to 100,000 metric tons last year from $140,000 in 2008, according to the U.S. Geological Survey's market report. The annual average price dropped to $2.52 from $3.19, according to Purchasingdata.com.
So far this year, with aluminium smelting barely creeping 2% ahead of depressed late-2009 levels, there are no reports of major magnesium buying. More than 40% of the metals use is in aluminium smelting. Structural uses of magnesium accounts for more than 30% of primary metal consumption but no early-2010 buying surge by die casters and fabricators is evident there either.
The view of Magnesium Monthly Review has been that renewed Chinese buying after the just-ended Lunar New Year business shutdowns could boost prices on the world market. But, it admits "there has been little (buying) movement noted and the holiday is over."