Singapore (Platts)--21Feb2013/628 am EST/1128 GMT

Spot export trades for Chinese magnesium ingot on a FOB basis stayed fairly thin after the Lunar New Year holiday but showed signs of picking up, while offers softened, industry sources said Thursday.

China was officially closed from February 9 to 15 for the holiday. Some workers are still away and will only return after the 15th day of the Lunar New Year on February 24.

Export offers for Chinese magnesium ingot were at $2,800-2,850/mt FOB China Thursday, compared with around $2,850/mt on February 7, before the holiday.

Platts on Thursday narrowed the weekly magnesium ingot (minimum 99.8%) assessment to $2,830-2,850/mt FOB China, from $2,830-2,870/mt on February 7. There was no assessment on February 14 due to the holiday.

The Chinese magnesium diecast alloy prices were reduced to $3,130-3,150/mt FOB China, from $3,130-3,170/mt.

"The market is generally still quiet as some plants will only resume work after the 15th day of the Lunar New year. We have received a few inquiries this week but nothing done," said a northwest China-based who was offering at $2,840-2,850/mt for early-March loading.

Another northwest China-based producer also said he had seen a few overseas inquiries after returning from the break on Monday.

"We are still talking. Nothing concluded yet," said the second north western Chinese producer, who was offering around $2,850/mt.

A north China-based analyst said: "Some market participants are adopting a 'wait-and-see' approach pending possible new government policies and measures in mid-March after the usual annual policy meetings."

Buyers in Asia agreed that trading had remained slow.

"We bought 40-60 mt at $2,830-2,850/mt CFR Japan this week, with loading before mid-March. Despite this, trades have been slow as Japanese end-users remain cautious," said a Japanese trader, who resells to Japanese domestic end-users.

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

Another Japanese reseller said: "We did not check this week as we still have stock on hand from the purchase made before the Lunar New Year. Offers should be slightly above $2,800/mt FOB China."

Meanwhile, Chinese domestic magnesium ingot prices were also holding steady after the holiday in thin trade, sources said.

Chinese domestic prices were around Yuan 16,900/mt ($2,705/mt) ex-works in Shaanxi this week, similar to before the break. In Shanxi, most offers were steady around Yuan 17,200-17,300/mt ex-works, compared with around Yuan 17,300/mt previously.

--Alvin Yee, alvin_yee@platts.com

--Edited by Jeremy Lovell, jeremy_lovell@platts.com

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