US magnesium price may slump ahead: market

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...

Published

Suzy Waite

February 13, 2012

23:43 GMT

New York