Magnesium Market Update (March 22, 2012)

By Shihoko Goto — Exclusive to Magnesium Investing News

Demand for magnesium has been sluggish in recent months, with Chinese exports of the metal falling nearly 16 percent in January from a year ago to 14,391 tonnes at an average price of $3,068 a tonne, according to Chinese customs data. Prices have been trending lower too, trading in the range of $3,050 to $3,150 a tonne in February and March. A year ago, magnesium was trading in the range of $2,800 to $2,900 a tonne.

Traders have pointed out that China has been restricting its production as well as exports of magnesium. This restrictive export policy has officially been challenged by the United States, the European Union, and Japan, and is to be considered by the World Trade Organization in mid-March. Looking ahead, traders anticipate an increase in magnesium demand in the second quarter as the manufacturing sector picks up.