We wrote recently on the impact rising silicon, magnesium and manganese prices out of China were having on the aluminum industry. Many European mills had issued advisories, essentially putting their customers on notice about possible delivery delays and softening them up for the possibility of cost increases.
Well, now it is steel’s turn to sound the bell.
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Magnesium shortages impact steel sector
A post in New Civil Engineer outlines the fears of magnesium shortages spoiling the steel party. The post quotes major European trade bodies who have warned that supply issues from China since September mean the continent could face an acute shortage of magnesium, potentially running out of supply within 30 days.
In an almost exact copy of the aluminum producers’ situation, the European Steel Association has warned that costs have risen from around $2,000 per metric ton to between $10,000 and $14,000. That is threatening some mills to close production, even though the quantity required per ton of steel is relatively small.
Magnesium hasn’t traditionally been thought of as a critical metal. Now, with supplies drying up, it is proving all too critical to Europe’s alloying industry (whether steel or aluminum).
Europe and import dependence from China
Unlike the U.S., which enjoys both primary and secondary magnesium domestic production, China supplies 95% of Europe’s magnesium demand. Last year, this totaled...
Read Full Story: https://agmetalminer.com/2021/11/01/steel-producers-fear-magnesium-shortages-will-hit-production-in-europe/
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