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| Magnesia |
Lower liquidity prompts shift from weekly to monthly pricing for dead burned and fused magnesia FOB China
Fastmarkets has officially amended the frequency of price assessments for four grades of magnesia FOB China, transitioning from weekly to monthly reporting. The decision follows a one-month consultation that concluded on May 23, and reflects lower liquidity in the Chinese magnesia market.
The change applies to the following assessments:
- MB-MAG-0005: Dead burned magnesia, 97.5% MgO, lump
- MB-MAG-0002: Dead burned magnesia, 90% MgO, lump
- MB-MAG-0009: Fused magnesia, 97% MgO, Ca:Si 2:1, lump
- MB-MAG-0007: Fused magnesia, 98% MgO, lump
The first monthly assessment will occur on Tuesday, May 27, with subsequent publications on the last Tuesday of each month at 7:00 PM Shanghai time.
Revised Specifications to Reflect Market Conditions
According to Fastmarkets, the updated pricing frequency aligns better with the current trading pace and liquidity in China’s magnesia sector. The specifications now include:
- Minimum Quantity: 1,000 tonnes
- Location: FOB China
- Timing: Spot transactions
- Unit: US$/tonne
- Publication: Monthly, last Tuesday, 7 PM Shanghai time
This move is expected to enhance market clarity and provide a more realistic pricing benchmark for buyers and sellers in an increasingly subdued market.
The four price points remain part of the Fastmarkets industrial minerals package. Stakeholders are invited to contribute pricing data or feedback via Nina Hu at pricing@fastmarkets.com, using the subject line “FAO: Nina Hu, re: Magnesia FOB China.” Comments not marked confidential may be made public upon request.
For further details, refer to Fastmarkets’ full pricing methodology documents.
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