Magnesium deficit: various sectors and employees issue alarms over potential devastating consequences
The European metals-producing and -using industries are in crisis due to an acute shortage of magnesium supply from China. This shortage, caused by the Chinese government's efforts to curb domestic power consumption, is threatening thousands of businesses across Europe, their entire supply chains, and the millions of jobs that rely on them.
The European Commission and national governments are urged to take urgent steps to mitigate the impact of this crisis on European industries. A cross-industry group of European metals-producing and -using industries and their workers have issued a warning about the catastrophic impact this shortage could have.
Magnesium, a key alloying material widely used in the metals-producing industry, is essential for various sectors within the European Union, including automotive, construction, and packaging. The ramifications of the supply crisis extend far and wide, causing far-reaching ramifications on entire EU value chains.
The European Union is almost totally dependent on China (at 95%) for its magnesium supply needs. However, the current Chinese supply shortfall is significantly impacting European aluminium, iron, and steel producing and using industries, along with their raw materials suppliers.
Prices for remaining magnesium imports have skyrocketed as a result of the shortage, trading at extortionate prices of about $10,000 to 14,000$/mton. This is a stark increase from approximately $2,000/mton earlier this year, making it almost impossible for European companies to produce or source magnesium-containing materials at a viable level.
The European metals-producing and -using industries and their workers are appealing to the European Commission and national governments to collaborate with Chinese authorities to address the magnesium supply shortage crisis. They are advocating for collaboration between European and Chinese authorities to alleviate the crisis and are requesting immediate action to address both the short-term critical shortage issue and long-term supply effects on European industries.
If not addressed promptly, this crisis could lead to magnesium production shortages, business closures, and associated job losses in Europe. The European Commission and national governments are therefore requested to collaborate with Chinese counterparts to address the immediate and long-term effects of the Chinese magnesium supply shortage on European industries.
