Current magnesium market situation and China’s production monopoly

Subject: Current magnesium market situation and China’s production monopoly

Companies in the manufacturing sector are being told almost daily by their suppliers that certain products have risen in price or can be produced only in limited quantities or not at all. This is true, for example, of companies which process magnesium and/or aluminium for which the supply chain originates in China, which has an almost total monopoly in these materials. Reserves of magnesium are expected to be exhausted in the coming months, which will have far-reaching consequences for the whole of the aluminium value chain.

The Commission recently detailed measures which the EU and the Member States might take to tackle the immediate impact of the current price rises in the energy sector.

1. What is the Commission’s assessment of the current magnesium market situation and China’s market position in this regard?

2. How will the Commission tackle the shortage of magnesium and ensure access to industrial metals for European companies?