Over the past decade, global primary magnesium production has been dominated by supply from China using the pyro-metallurgical Pidgeon Process. The process is both energy and labour intensive, so is well-suited to some specific jurisdictions within China. However, as labour rates and energy costs increase, magnesium production costs are likely to rise as well, which could see new projects in other countries begin to emerge.

The fortunes of the global magnesium market, particularly the alloy sector, remain critically dependent on China’s economic growth. Chinese vehicle number growth and Chinese vehicle magnesium intensity (kg/vehicle) will be key determinants of future auto sector demand. Should there be any change to the forecast growth in vehicle numbers and/or fuel economy legislation, Chinese demand would be directly affected.

Outside China, the aluminium alloy sector remains the largest market segment for primary magnesium and, with a healthy outlook forecast for the aluminium sector, magnesium should stand to benefit.

CM has been the world’s magnesium industry consultancy of choice for decades. CM publishes a regular global magnesium industry outlook report, conducts numerous industry field studies each year and presents the International Magnesium Association (IMA) and its members with an annual global industry assessment and outlook. CM also prepares a range of single-client, single-scope magnesium industry reports for existing producers, new projects, financiers and governments.

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