World Economy

Demand for Magnesium Growing

Demand for Magnesium GrowingDemand for Magnesium Growing

Magnesium prices are rising due to tight supplies from China, by far the world’s largest producer of the rare-earth metal, and brisk demand from the auto industry, Nikkei reported .Magnesium is mainly used in alloys to strengthen aluminum. While demand for magnesium is growing as automakers work to make their cars lighter, it is also expected to be used in new types of batteries for electric vehicles. If the development of eco-cars proceeds as forecast, magnesium will likely continue to gain luster. The global magnesium market is expanding steadily. Turkish magnesium producer Esan estimates global demand will total just under 1.6 million tons by 2024, up 50% from 10 years earlier. Prices for magnesium produced in China and shipped to Japan are hovering around $2,630 per ton, including shipping costs, up 7% since the beginning of the year. Prices were sluggish in 2017, primarily due to a glut in China. Now they are rising as China, which accounts for about 80% of global magnesium output, strengthens its environmental regulations.

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