The Yangtze River Nonferrous Metals reported that “due to the lack of magnesium supply, the global auto industry and aviation industry may face a shortage of parts next year.” According to the British “Financial Times”, China’s magnesium production accounts for nearly 90% of the world’s total. However, this industry is extremely energy-intensive, and the Chinese government’s strict control of electricity has led to a recent drastic reduction in magnesium production. According to Reuters, the European Industrial Organization stated that the European Commission must initiate negotiations with China to alleviate the serious shortage of magnesium and prevent the closure of factories from affecting millions of jobs.
According to the information introduced by the Magnesium Industry Association of China Nonferrous Metals Association, China’s total reserves of magnesium resources account for 22.5% of the world, ranking first in the world. According to data from the United States Geological Survey, the global annual output of magnesium ingots is about 1 million tons. China is the main producer of magnesium ingots in the world, and its market share has remained above 85% in the past five years.
“China’s rapid reduction in global supply of magnesium has been significantly improved in October, and it is gradually returning to normal.” SMM Magnesium analyst Liu Hao said that after October, some factories cut off energy-consuming businesses and concentrated their production capacity on For magnesium, supply is no longer a problem. The price of magnesium has begun to fall, and the price has stabilized. Therefore, the trade link has also begun to stabilize. The worries of European and American countries can be gradually dispelled.