Dead burned magnesia (DBM) prices quoted in Industrial Minerals for 97.5% MgO lump increased by 90% (or US$470-660/t) to US$1,100-1,400/t fob China on 9th March 2018, from US$630-740/t just a week earlier. Northeast Asia Industrial Minerals Exchange reported US$1,173-1,212/t for 97% 0-30mm MgO on the same day.
Roskill view: These reported price increases reflect a near doubling in price for high grade DBM over the course of a week. As Roskill noted here back in August 2017, prices of Chinese dead burned magnesia exports have also been increasing since the end of 2016, following supply shortages due to China’s tougher environmental protection inspections at magnesite mines and magnesia plants. A ban on dynamite blasting at selected mines in Liaoning Province has exacerbated these shortages in early 2018.
Roskill’s new Magnesium Compounds: Global Industry, Markets & Outlook report, which is now in its 13th edition, will be published in Q2 2018 and will detail magnesite mining in China and more than 50 other countries as well as demand projections and price forecasts based on our outlook for supply and demand.