03 Mar 2023 | 16:22 UTC

Platts to consolidate pure magnesium prices, revise secondary alloy specifications

Following a period of industry consultation, Platts, part of S&P Global Commodity Insights, plans to consolidate its assessments for minimum 99.8% pure magnesium.

Under this consolidation, Platts will discontinue its US Spot Western assessment (MMAHM00) and rename the US Dealer Import assessment (MMAHQ00) to "Magnesium 99.8% DDP US," effective July 5.

The changes were first proposed Dec. 16, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/121622-platts-proposes-consolidation-revisions-to-us-magnesium-spot-price-assessments

Following market feedback, Platts has moved the effective date to July 5, having originally proposed June 1 implementation, and is revising the dimension specifications for MMAHQ00 to normalize to ingots.

The consolidation and specification changes reflect changes to US magnesium market supply and trade flow. Platts has observed magnesium imports from various origins accounting for a greater percentage of US supply.

Specifications for MMAHQ00 will be revised as follows:

Current Specification

New Specification

Assessment

Magnesium US Dealer Import

Magnesium 99.8% DDP US

Symbol

MMAHQ00

MMAHQ00

Published

Wednesdays

Wednesdays

Origin

Typically non-western

Any origin

Quality

Min 99.8% pure, non-oxidized

Min 99.8% pure, non-oxidized; ASTM Grade 9980A

Quantity

Min full 40,000 lb truckload

Min full 40,000 lb truckload

Dimensions

Ingots, sow or T-bars

Normalized to ingots

Incoterms and location

Duty paid, delivery US customer works

DDP US customer works

Timing

Delivery within 30 days

Delivery within 30 days

Payment

Net 30 days

Net 30 days

UOM

cents/lb

cents/lb

Platts also will rename its Magnesium US Die Cast Alloy Transaction assessment (MMAHR00) "Magnesium 93% Alloy DDP US" to revise the assessment scope and account for more aluminum users participating in purchases of secondary magnesium alloys, in addition to traditional diecasters purchasing automotive-qualified material, effective July 1.

Platts will change the specifications for MMAHR00 to align with aluminum-user industry standards, moving to Mg basis 93% content from 91%-95% currently.

In response to market feedback, Platts has reviewed the quality and dimension specifications and made changes from the original proposal.

Specifications for MMAHR00 will be revised as follows:

Current Specification

New Specification

Assessment

Magnesium US Die Cast Alloy Transaction

Magnesium 93% Alloy DDP US

Symbol

MMAHR00

MMAHR00

Published

Wednesdays

Wednesdays

Origin

Any origin, primary or secondary

Any origin, primary or secondary

Quality

91%-95% magnesium; AZ91D, AM50, AM60 on-spec diecast alloys

Normalized to 93% magnesium; AM50A, AM60B meeting aluminum user specifications

Quality specifications

91%-95% Mg, 4.2%-9.7% Al, 0.15%-1.0% max Zn, 0.1%-0.2% max Si

Basis 93% Mg, 4%-7% Al, 0.3% max Zn, 0.1% max Si, 0.0005% max Be

Quantity

Min full 40,000 lb truckload

Min full 40,000 lb truckload

Dimensions

Ingots, sow or T-bars

Normalized to ingots

Incoterms and location

Delivered, duty paid US diecaster works

DDP US customer works

Timing

Delivery within 30 days

Delivery within 30 days

Payment

Net 30-60 days

Net 30-60 days

UOM

cents/lb

cents/lb

The assessments are published in Platts Metals Daily, Platts Metals Week Supplement and Platts Metals Alert on fixed page PMA 0368, and in Platts Market Data category LM under the above-mentioned symbols.

Please send comments and questions to metalsamericas@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.