Magnesium
From IntFX
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[edit] Overview
Magnesium is the third most commonly used structural metal, following steel and aluminium.
Magnesium compounds, primarily magnesium oxide, are used mainly as refractory material in furnace linings for producing iron, steel, nonferrous metals, glass and cement. Magnesium oxide and other compounds also are used in agricultural, chemical and construction industries. As a metal, this element's principal use is as an alloying additive to aluminium with these aluminium-magnesium alloys being used mainly for beverage cans.
Magnesium is known as the lightweight champion of the metals. It is the lightest of all metals used in general engineering, with a relative density only 1.7 times that of water! Aluminium is more than half as heavy again, iron and steel are four times heavier, and copper and nickel are five times heavier. Perhaps not unexpectedly though, magnesium is also relatively weak in the pure state, with a tensile strength of only 110 newtons per square millimetre. However, when alloyed with various other metals it can be strengthened two or even three times over, yet still remain very light. Aluminium, zinc and thorium are common alloying metals.
[edit] Applications
Applications for magnesium Magnesium is now being used in a wide variety of automotive applications including engine parts, interior components and a growing number of structural parts, for example:
- Engine: Cylinder head covers; intake manifolds; gearbox housings; engine blocks; oil pans; bed plates
- Interior: Steering column and steering wheel components; clutch and brake pedal brackets; airbag retainers; mirror brackets; door handles; handbrake levers; heat sinks; headlight retainers
- Body: Instrument panels; front end cradles; seat frames and components;
roof rails; door frames; wheels; radiator supports; bonnets; boot lids
- Other industries are also starting to recognise the benefits of working with magnesium. There are applications not only in aerospace and other forms of transport, but also in a growing number of consumer products such as mobile phone cases; laptop housings; camera and binocular housings; MP3 players; bicycle components; suitcase frames; hand tools.[1]
[edit] Supply/Demand
The U.S. Geological Survey estimated that 157,000 tons of primary magnesium metal was produced throughout the world in 2006, which did not include the United States and China.
The China Magnesium Association (CMA) reported that 526,000 tons of primary magnesium was produced in 2006. This represents a sizable increase of +12%. It should be noted however that CMA also reported that domestic consumption within China had increased approximately 50% to 150,000 tons Detail written in the U.S. Geological Survey indicated that the U.S. produces approximately 43,000 tons of primary magnesium annually. Thus, total 2006 production of primary magnesium in the world was approximately 726,000 tons. [2]
The above pie chart shows world consumption of magnesium oxide:[3]
[edit] Pricing Structure
Predictably, the low price of Chinese magnesium has been the principal factor in this extraordinary rise to prominence. Prices for Chinese magnesium have plunged from levels of more than $2,600 per tonne in 1996 to levels below $1,300 per tonne in 2001/2002. Equally predictable has been the response from producers in the USA and Europe who initiated antidumping proceedings, only to find that Chinese prices went even lower causing domestic prices to fall to basement levels.[4]
[edit] Price forecast
Market prices for magnesium have almost doubled over the past two years to $2.55/lb while silicon has surged to $1.54/lb from 72¢ in the same period.
Magnesium buyers estimate they may pay an average $2.50/lb on the spot market in 2008, compared with $1.60 so far this year. Reason: Limited supply from major global suppliers, which is expected to boost market prices for the metal used in light metal die castings and, as an alloy with aluminum, in beer and beverage cans.
Market reports say U.S. Magnesium of Salt Lake City and Dead Sea Magnesium of Beer Sheva, Israel, have stopped booking guaranteed-price supply contracts for next year’s deliveries. Reason: U.S. Magnesium has committed 9,900 tons of magnesium to General Motors while Dead Sea Magnesium has committed large tonnage to Volkswagen. Upshot: Spot market sales for January deliveries are being handled by traders (mostly with material from China and Russia that are subject to dumping duties) at $2.10, as compared with November deliveries averaging $1.90lb.[5]
[edit] The dominance of China
China has dominated world supplies of magnesium since 2005. They supplied 4% of world demand in 1995 and now supply around 72%. The US, on the other hand, supplied 45% of world demand in 1995 and by 2007 has only one producer (US Magnesium), accounting for only 7% of world production.
In 2006, total world production was 726,000 tonnes (of which 526k from China, 43k from the US, 50k from Canada, 50k from Russia). This represented an 8% increase over the previous year. China increased production by 12% compared with 2005. Production in the US, Canada, Norway and France has fallen by around 100,000 tonnes whilst it has increased by around 250,000 tonnes in China.
In 2006 domestic consumption of magnesium in China increased by 50% to 150,000 tonnes.
There are 81 operational magnesium producers in China at present, and a further 50 that are not currently producing. The total capacity is around 815,000 tonnes - almost 100,000 tonnes more than the total world production in 2006.
80% of Chinese magnesium production or 50% of world production is based in Shanxi province.
In the past, the focus in China has been on ingot production rather than downstream processing, but massive amounts of public money are now being invested in switching the focus to end products: central government has invested Yuan 41 million in the development of new magnesium alloys and in die casting technologies. In addition to this, local governments and a variety of research institutes have invested Yuan 600 million in magnesium-based technologies and applications.
The production of magnesium end-products is focused in three regions: Shanghai for automotive; Chongqing for motorcycle and automotive; Quingdao for 3Cs.
Around 25% of magnesium producers have recently switched from coal-fired manufacturing to the use of waste gas from coke ovens. It now costs them only Yuan 500 to produce a tonne of magnesium compared with Yuan 3000 per tonne for coal. At the same time, they are helping to solve a major pollution problem facing the coke industry.[6]
[edit] External References
- ↑ http://www.keronite.com/market_intelligence.asp
- ↑ http://www.intlmag.org/files/yend2006.pdf
- ↑ http://www.sriconsulting.com/CEH/Public/Reports/747.2000/
- ↑ http://www.azom.com/details.asp?ArticleID=1801
- ↑ http://www.purchasing.com/article/CA6501220.html?industryid=48405&nid=2863
- ↑ http://www.keronite.com/market_intelligence.asp Market Intelligence
