European trade groups warn about 'catastrophic impact' of Chinese magnesium shortage

October 23, 2021 / www.metalbulletin.com / Article Link

European trade groups warned about the potentially "catastrophic impact" of a Chinese magnesium supply shortage on metals producers in the region, calling on the European Commission and national governments to take immediate action to mitigate the risks to industry.

The groups - European Aluminium, European steel association Eurofer, European Automobile Manufacturers' Association, European metals association Eurometaux, IndustriALL, the European Coil Coating Association, the European Association for Surface Treatment on Aluminium, the International Magnesium Association, the Association of European Wheel Manufacturers, Association of European ferro-alloy producers, European automotive suppliers association Clepa and Metal Packaging Europe - warned that without urgent action, thousands of businesses across Europe, their entire supply chains and the millions of jobs that rely on them are under threat.
Power cuts in China, caused by high coal prices and the country's limit on power consumption driven by its goals to reach carbon neutrality by 2060, have curbed production of energy intensive raw materials, such as magnesium, in the third quarter of 2021.

"With the European Union almost totally dependent on China (at 95%) for its magnesium supply needs, the European aluminium, iron and steel producing and using industries...

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