SHANGHAI, Nov 24 (SMM) - According to the General Administration of Customs, Chinese magnesium ingot exports stood at 22,966 mt in October, up 23.4% MoM and down 5.6% YoY. The exports totalled 229,570 mt from January to October, an increase of 7.1% YoY.
In terms of destinations in October 2022, the exports to Netherlands stood at 6,280 mt, accounting for 27% of the total Chinese exports; Turkey 3,196 mt, accounting for 14%; Canada 2,778 mt, accounting for 12%; India 1,480 mt, accounting for 7%; and Czech 1,136 mt, accounting for 5%.
Among them, the exports to Turkey, Czech and Bahrain rose the most with a MoM increase of 1,554 mt, 1,516 mt and 1,129 mt respectively, while those to Japan, Indonesia and India fell 1,199 mt, 466 mt and 456 mt respectively.
Regarding the increase in the MoM increase in exports in October, SMM believes that the end of summer break overseas is among the major causes, and the export orders placed in September were delivered in October, boosting the reading in the month. On the other hand, due to the continuous decline in the prices of magnesium ingots in October, the exporters were able to deliver some of the previous backlogged export orders, which also contributed to rising exports in October.
However, some leading traders said that the export growth in October is far from a firm evidence that the export market has fully recovered. “In November, although our export orders have improved compared with the previous month, they are still below the level in the same period in previous years. Due to the continuous decline of magnesium prices, it is more difficult to compete for orders in the foreign trade order market, and the exporters aggressively lower the prices to clinch a deal. As a result, the risks will accumulate in the future, which is also why the export orders fall short of expectations.” Said person in charge of a large foreign trade company. Under the current oversupplied magnesium ingot market, whether the export market can successfully recover in the fourth quarter will directly affect the subsequent trend of magnesium prices. SMM will continue to pay attention to the changes in subsequent export orders of magnesium ingots.