European Automobile Industry Association warning: magnesium stocks before the end of November

For the European automotive industry, the chip shortage crisis has not passed, and the new supply crisis has been near eye.

Recently, 12 industry associations such as the European Automobile Industry Association, the European Wheel Manufacturer Association, and the European Iron and Steel Industry Alliance issued a severe warning. It is the production shortage, business shutdown and related personnel are unemployed. "For this reason, the above association called on the EU committee and governments to immediately take urgent action to address the upcoming European discontinuation crisis.

The core is not flat, magnesium is weak and magnesium is a key material for producing aluminum alloys, while aluminum alloys are widely used in automotive production.

For Europe’s magnesium magnesia, the above association is attributed to the reduction in supply from China.

It is understood that the global magnesium capacity is mainly concentrated in Russia, China, South Korea and other places, and the EU is especially dependent on China in this regard, and about 95% of magnesium supply comes from China, and China is a large part of magnesium from Shaanxi Province. For two aspects of emission reduction pressure and energy shortage, many magnesium mills in China have been limited.

For European companies, since September, the magnesium supply from China has stopped, or cut sharply. The International Magnesium Industry Association (IMA) said that the price of magnesium in Europe has risen to the highest point of nearly 13 years, and may have increased further in the next few months, and the last half of the first half of the first half of the year is more normal. "

Rick McQiki, a chairman of the association, said: "At present, the increase in magnesium production and price increase is almost unprecedented. Since the 2008 Beijing Olympics, our industry has not experienced such a fast market change. Magnesium users or This situation will last. "In terms of price, the European Automobile Industry Association revealed that imported magnesium transaction prices reached 1 to 10,000 US dollars per ton, compared to US $ 200,000 per ton.

In addition, different from the chip, steel, etc., magnesium contact is easily oxidized, generally preserved for no more than 3 months. In this way, European companies are difficult to store magnesium in large-scale long-term.

Search for China’s cooperation to relieve corruption magnesium pressure "If the European Union does not take urgent action, this problem will not be resolved, threatening thousands of companies in Europe, their entire supply chain, and millions of jobs depending on them." European Automotive Industry Association and other industries said in the statement that "European, steel production and application industries and raw materials suppliers are particularly serious, and will have a profound impact on the entire EU value chain, including cars, buildings and packages. Terminal application industry. "This is not an alarmist.

To this end, the European Association organized to call on the EU and governments to cooperate with China to relieve short-term magnesium’s severe shortage, and avoid the impact on long-term supply of European industries.

In fact, before the above-mentioned association issued a joint statement, the German Nonferrous Metal Association has published a statement and called on the German government to consult with China. At present, China is the world’s largest original raw country producer, but according to the previous statistics of the US Geological Survey, European countries such as Austria, Spain, Slovakia also have certain magnesium reserves.

So why is Europe’s dependence on China’s magnesium? On the one hand, China’s magnesium production is cheaper than Europe and America, on the other hand, magnesium production costs a lot of energy, and many European and American countries are not willing to produce themselves, but choose from China. Relatively speaking, the sense of the North American crisis is not so heavy, because it has a large local producer, namely the US magnesium industry, to a certain extent guarantee the supply.

Today, the supply of supply from China will naturally make the European industrial supply chain produce a rapid chain reaction.

However, there is indication that the problem of magnesium has been relieved, and magnesium prices have continued to fall in recent days, and some companies have been replenished, and China’s magnesium supply is gradually returning to normal.

For the industry’s appeal, the European Commission has previously stated that it has been negotiated with China, "" Solving the shortage of erotic ", and is" researching and assessing solutions that can get rid of China’s supply dependence ". Since 2017, magnesium has been included in the key raw material list of European industries. Organizations such as European Aluminum Association also believe that the EU needs to develop more powerful, more coherent metal strategies to avoid such crises in the future. Internship Editor: Gao Chen Xu.