Editor: Adam Zhang
China’s export volumes of CCM, FM and DBM rose sharply in January 2018 compared with December 2017. Volumes of the first two products continued to grow year-on-year, while DBM exports fell slightly.
Chinese export volumes of caustic calcined magnesia (CCM) came to 82,946 tonnes in January 2018, up by 116.7% from the corresponding month of last year, and up by 38.7% from December 2017, according to official Chinese data.
Export values totaled $14.41 million, an increase of 132.1% year-on-year, while the average CCM export price rose by 7.1% to $173 per tonne because of reduced output after strict environmental inspections in China.
The five largest importers of CCM from China in January were the United States, Japan, The Netherlands, Taiwan and Malaysia.
Export volumes in 2017 surged by 94.1% year-on-year to 653,528 tonnes, boosted by the removal of China’s export tax and quotas on magnesia from January 1 last year. Their total value rose by 46.4% to $97.2 million.
Magnesia prices and demand have risen throughout 2017 and into 2018 because in China, the world’s largest producer, strict enforcement of environmental legislation led to major disruptions to production.
Magnesia, calcined, 90-92% MgO, fob China was trading at $205-230 per tonne, according to Industrial Minerals assessment on February 27. This compares with around $135-160 per tonne in mid-2017.
Similarly, exports of fused magnesia (FM) in January were up by 25.5% year-on-year and by 76.3% month-on-month to 67,414 tonnes.
The export value of FM totaled $60.90 million, an increase of 154.2% year-on-year, while the average export price rose by 102.5% to $903 per tonne on continued increases in China’s domestic prices. This was in response to tight supply caused by the environmental inspections.
The five principal destinations for exports were the US, The Netherlands, Japan, Poland and Russia.
The total export volume in 2017 of 428,277 tonnes was up by 30.7% year-on-year while the total value increased by 47.2% year-on-year to $242.54 million.
Prices of fused magnesia have increased dramatically in the past 12 months on environment-related legislation.
The price of fused magnesia, basis 97% MgO, Ca:Si 2:1, lump, fob China, was $1,600-1,800 per tonne on February 27. This was up from $745-800 in July 2017 and $440-455 at the start of the year.
Export volumes of dead burned magnesia (DBM) were down by 4.9% year-on-year in January, but up by 34.6% month on month to 90,534 tonnes.
The export value of DBM was up by 69.4% to $30.97 million from January 2016, while the average price increased by 78.6% year-on-year to $342 per tonne as a result of reduced output because of the environmental inspections.
The five main export destinations of DMB were the US, Japan, The Netherlands, South Korea and India.
Chinese exports in January-December 2017 increased by 63.4% year-on-year to 884,203 tonnes, while the total value increased by 52.4% year-on-year to $199.2 million due to the higher export volumes and continuously rising Chinese domestic prices.
Spot prices for DBM basis 97.5% MgO, lump, fob China were $630-740 per tonne on February 27, compared with $365-395 per tonne in July and $305-335 per tonne at the start of 2017.