From February 1st 2004, exports from China, which dominates world magnesium compounds supply, came under the influence of a new export syndicate, the "China Magnesite Self-disciplined Association" (CMSA). The association, which represents five major Chinese magnesite players; Haicheng Xiyang Corp, Haicheng Houying Corp, Jiachen Co Ltd, Haicheng Huayu Corp., China Minerals Import &Export Corp, aims to influence control over pricing and volumes of magnesite exports. The new association is the fifth version of such a syndicate set up to regulate magnesite prices and exports since 2000. Whereas each of the previous syndicates has failed, industry sources believe that given the present insatiable demand for magnesite both in China and abroad, this latest magnesite syndicate could succeed in driving prices up or at least keeping prices firm.
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