The rapid development of Chinese industry provided the impetus for the formation of a number of related sectors of the production complex. After all, this eastern state in recent years has become a very strong and dangerous competitor in the global trading arena for most universally recognized European corporations. However, the cultural traditions of multi-million population of the country and its historical heritage can not be discounted. Doing business here is quite radically different from conservatism and pragmatism of many central states. Sometimes the celebration of a solemn event can quite strongly influence the price policy or demand for materials on the metal market. Thus, almost complete calm in the trade magnesium lately analysts attributed to the beginning of the holiday vacation in Chinese families, due to the celebration of the annual festival of traditional boats in the form of the legendary dragons. This celebration is always marked by a huge parade and descent widescreen distinctive colorful boats executed in the style of the mythical winged creatures of the water. In such a celebration of business and commercial life in Chinese cities freezes and buying activity in the market of nonferrous metals and other industrial assets falls almost to zero. I was no exception and the magnesium segment. After normalization of the situation in the commercial compartment recent holiday caused a significant reduction in demand for important industrial material. This situation is immediately reflected on the valuable raw material costs. Only in the last few days, the sales price of magnesium has decreased by at least one hundred yuan. The decrease in price policy intends traders went, wanting to sell more substantial stocks of their goods. Reduced magnesium supply due to such vacation, will not cause significant damage to the stability of the magnesium sector, because after the completion of celebrations entrepreneurs expect the return of the initial interest in their product. Trade as an important strategic material occupies a very significant niche in the Chinese economy, which is not completely neglected. However, the people of the eastern culture requires compliance with its historical traditions, in spite of the possible financial losses.
9 June 2014
The ups and downs of the Chinese magnesium market
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