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Solid demand from automotive and aluminum markets have kept magnesium prices firm in the U.S., with some participants saying prices could even experience a slight uptick in the second half of this year if demand stays steady.

 

Magnesium prices continued to trade between $2.05 and $2.25 per pound Monday where they have held since late April. Aluminum and automotive markets—two of the largest consumers of magnesium—have had strong years in the first half of the year, and continue to take the full amount of their contracted material magnesium in the summer months rather than delaying deliveries until later in the year, sources said. "Automotive customers are taking their volumes (and) aluminum is doing well in general. The die casters and the automotive companies are showing great numbers," one producer said.