According to the Financial Times, the energy crisis in China has forced authorities in Shaanxi province to close 35 of 50 magnesium smelters about a month ago. The rest were told to halve production to save energy.
Shaanxi is one of China’s key magnesium producing regions, and China accounts for about 80% of global production of the metal.
Last week two producers of aluminium billets, US-based Alcoa and Canadian Matalco, said they were running out of magnesium and the situation could cause supply disruptions.
European prices for magnesium have already reached an all-time high due to the magnesium shortage. Over the past month they rose by 75% and crossed the mark of $9,000 per tonne.
source: ft.com
