Singapore (Platts)--7Feb2013/529 am EST/1029 GMT

Spot export offers for Chinese magnesium ingot on a FOB basis remained steady, while physical trades were very thin as many Chinese sellers have taken off this week for the Lunar New Year holiday, industry sources said Thursday.

China is officially closed from February 9 to 15 for the holiday. Last weekend saw a massive exodus of migrant workers making their way home for the reunion celebrations.

Generally, indicative export offers for Chinese magnesium ingot were holding steady around $2,850/mt FOB China Thursday, unchanged from the previous week.

Platts on Thursday narrowed the weekly magnesium ingot (minimum 99.8%) assessment to $2,830-2,870/mt FOB China, from $2,830-2,880/mt last Thursday and the magnesium diecast alloy prices were also revised to $3,130-3,170/mt FOB China, from $3,130-3,180/mt last week.

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Several Chinese sources told Platts the holidays had already begun.

"We are closed for the holiday. There's really nothing much in the market this week," said a Chinese producer, who last heard offers around $2,850/mt.

Another Chinese producer, who indicated offers around $2,850/mt last week, said: "There are not many offers in the market as most sellers have stopped offering. They are off for the holiday. We are closed too."

Buyers in Asia held similar views.

"We last heard offers at a FOB equivalent price around $2,850/mt, unchanged from the previous week. Anyway, there is really nothing much in the market as most Chinese plants are shut for the holiday," said a Japanese trader, who resells to Japanese domestic end-users.

The Japanese trader usually buys on a CFR Japan basis.

The freight to Japan from China is about $20-30/mt.

Another Japanese reseller said: "We did not inquire this week as we have bought some last week. Anyway, most Chinese plants have closed for the holiday and there are not many offers in the market."

This Japanese source reckoned that offers should be holding steady around $2,850/mt.

A Taiwanese buyer said: "We will only look into buying after the Lunar New Year holiday."

Meanwhile, Chinese domestic magnesium ingot prices were also holding steady in trade thinned by the holiday.

Chinese domestic prices were at Yuan 16,700-17,100/mt ($2,677-2,741/mt) ex-works in Shaanxi this week, similar to those heard the previous week. In Shanxi, most offers were steady around Yuan 17,300/mt ex-works, unchanged from last week.

--Alvin Yee, alvin_yee@platts.com
--Edited by Jeremy Lovell, jeremy_lovell@platts.com

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