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US magnesium price may slump ahead: market

February 13, 2012 - 23:43 GMT Location: New York

KEYWORDS: Magnesium , US Magnesium , dumping

Magnesium spot prices may drop below $2 per pound later this year on increased imports and an oversupply in the United States, according to market sources.

While material continues to trade in or close to AMM's range-a second buyer priced the majority of his deals at between $2.05 and $2.20 per pound recently, while a producer closed one truckload sale at $2.30 per pound last week-sources agree that the capacity increase, coupled with imports, could send the magnesium price below the $2 mark later this year.

US Magnesium expects to increase annual capacity at its Rowley, Utah, facility to 63,500 tonnes in mid-2012 from 42,000 tonnes previously (AMM, Oct. 10). Today, it is operating at a capacity of 60,000 tonnes, a...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.


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