China Direct Industries Receives Contracts Valued at $6.5 Million
China Direct Industries, Inc. (NASDAQ: CDII) announced today that it recently received several magnesium contracts valued at approximately $6.5 million to be delivered by the end of calendar year 2010.
Prices of pure magnesium have recently surged to over $2,900 per metric ton FOB China, an increase of over 7% in the past two weeks. This is mainly due to the rising price of ferrosilicon, one of the key raw materials in the magnesium production process.
Many ferrosilicon producers are experiencing rolling blackouts as part of the Chinese government's initiative to meet their yearend energy savings target. This has caused a shortage of ferrosilicon supply resulting in a price increase of more than $200 per metric ton.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.