Magnesium Market Update (May 24, 2012)

Demand for magnesium has been steady at best as larger consumers have mostly been living off contracted deliveries. Metal-Pages reported that US magnesium min 99.9 percent traded in a range of $2.00 to $2.15 a pound in the week ended May 18.

Looking ahead, prices are expected to remain range-bound during the summer months, when trading is usually slower. A downside risk to magnesium demand, as with all metals, is the impact of further deterioration of the European economy. In addition, magnesium traders will be monitoring output by the sole US magnesium producer, US Magnesium, which is increasing output to about 63,500 tonnes/year from 42,000 tonnes/year.