Fused magnesia market remains sluggish

Market transaction of fused magnesia still remains soft in China. Overall yielding status stays normal.

As producers are not so optimistic about future trend, some of them choose to reduce quotations this month. In order to speed up cashflow, some factory's ex-works price of FM 96%, lump gets lowered to 370 USD/t. At present, mainstream FOB price of FM 96.5%-97%, lump stays at around 560 USD/t. As for demand condition, operating rate of downstream industries is improving, but it's not transparent.

Insiders comment fused magnesia's profit margin is at low and space for price to get down further is narrow.