OREANDA-NEWS. May 31, 2007.  Russian producer Solikamsk Magnesium Works saw its sales jump in the first quarter compared with last year, driven primarily by surging internal sales despite lower export volumes. Total VAT free sales revenues from magnesium, niobium, tantalum and rare earth metals rose 45.6% to $21.4 million in Q1 2007 from $14.7 million in Q1 2006, Solikamsk reported this week.

Sales revenues from magnesium operations accounted for $12 million in Q1 2007, a 31.9% increase compared with Q1 2006. Solikamsk said its magnesium shipments totaled 4,416 mt, an increase of 278 mt from Q1 2006. Russian shipments jumped to 2,034 mt from 1,377 mt, while export shipments declined to 2,381 mt from 2,761 mt, "in order to cover surging demand from Russia," the company said.

Traders have said that SMW has had to meet Russian demand left unfilled by Russian producer VSMPO-Avisma, which has cut its planned output for 2007 to 10,000-11,000 mt from around 15,000 mt last year, a company official told Platts in February.

SMW reported that export sales revenues were steady in the first quarter of 2007 at $8.8 million compared with $8.6 million in Q1 2006, while Russian sales doubled to $12.6 million from $6.1 million. In the rare metals category, sales revenues surged to $7.6 million from $4.2 million. SMW's Q1 2007 shipments also included 156 mt of niobium oxide, down 11.5% from Q1 2006; 910 mt of titanium compounds, an increase of 326 mt from Q1 2006; and 779 mt of rare earths carbonates and oxides, up 224 mt.