China's total exports of all magnesium products rose 7% year-on-year to about 187,395mt for the January-June period of 2005, an official from Beijing Antaike, the state-run nonferrous metals information provider said Tuesday, quoting the latest customs statistics.

The value of the magnesium exports increased a marginal 1% year-on-year to $339-mil. Exports of unwrought magnesium with a minimum 99.8% magnesium content dropped about 6% to 96,961mt, with their value decreasing 15% to $165-mil.

The Antaike official told Platts: "Total magnesium exports from China reported very slow growth of only about 7% during the period. More Chinese producers are focusing on producing downstream products such as magnesium alloys, granule magnesium and magnesium powder and we have been seeing more exports of those products during the first half of the year."

He added: "We are likely to see magnesium ingot exports from China drop further in the near future as exporting those downstream magnesium products gives better profits."

The latest customs statistics also showed magnesium alloy product exports from China were up 34% to about 51,113mt. The value of the exports rose 34% to $106-mil.

Exports of granule magnesium rose 18% year-on-year to 36,155mt in the first half of 2005, with their value rising about 6% to $62-mil.

Magnesium scrap exports also rose 18% to 1,833mt.

The value of the exports rose 17% to $2.8-mil. Exports of magnesium products, however, dipped 1.7% to 625mt for the period.

Meanwhile, Chinese magnesium ingot prices remained at a low level of about $1,470-1,480/mt FOB China. Prices were quoted at $1,500/mt FOB China in early July and $1,600/mt FOB China in April.

"Prices are low with little spot business being done these days due to weak oversesas demand," the Antaike official said. "Domestic prices in China are also on the weak side, quoted at around Yuan 14,300-14,600 ($1,728-1,764)/mt ex-plant."

However, the source expected prices to rebound in late August when overseas buyers returned to the market after the summer holiday period.