IMA Statement on the Recent Surge in Magnesium Metal Prices
(Saint Paul, MN)The International Magnesium Association (IMA) is deeply concerned about the unsustainable price increases in primary magnesium metal. IMA is working with its global partners to communicate these concerns and support industry changes that would improve production capacity and price position.
Multiple factors are restricting global magnesium metal supply—driving the dramatic price increases. Action by Chinese officials to reduce power consumption in several provinces is having a global impact on a wide range of industries including energy-intensive primary metal production. It is currently anticipated that the efforts to reduce energy consumption are temporary while Chinese leaders address issues related to coal supply, air quality, and carbon emissions. With over 85% of the global magnesium metal production based in China, IMA encourages Chinese leaders to allow magnesium producers and smelters greater flexibility to restart production to meet demands and ensure the long-term viability of the magnesium industry.
Lightweight magnesium metal is a vital material across industries, including automotive, transportation, aerospace, and is crucial for producing aluminum alloys and steel. IMA is concerned that prolonged disruption of primary magnesium metal production will have a lasting impact on the global economy.
IMA supports efforts to modernize primary production and grow the use of lightweight magnesium components to reduce carbon emissions in the automotive and transportation sectors. IMA applauds the efforts underway to diversify the production of magnesium metal with lower carbon emissions.
IMA wants to reassure its members and allied industries that it is focused on the situation. IMA continues to believe that this rise in prices will be short term and that prices and supply will return to more normal conditions in the 2nd quarter of 2022.
