Several minor metals prices have increased sharply in the week ended Friday December 11 following rising offers from China and higher transportation costs while uncertainty about logistics and demand in the near term are preventing some traders from taking long positions, Fastmarkets learned.
"Price increases are massive... Almost all materials are currently strongly moving higher," a minor metals trader told Fastmarkets.
"On one side, sea freight from China to Europe is now four times higher than, say, eight weeks ago, due to the lack of containers as [there is] not enough shipment space. On the other side, producers are pushing up prices on a daily basis," he added, pointing out that demand has not necessarily boomed.
"I am not sure if this is related to real demand, mainly since so many countries in Europe are going to face new lockdowns in the coming weeks."
One of the minor metals with the highest price increase is magnesium,
following soaring freight charges but also
higher production costs due to rising coal and ferro-silicon prices.
"Magnesium is being supported...