Global Magnesium Market to Worth $6.36 Billion by 2028 | China Produces 80% of Magnesium | SkyQuest Technology
Global magnesium market was valued at USD 4.37 billion in 2021, and the market size is estimated to reach USD 6.36 billion by 2028, at a CAGR of 5.50% over the forecast period (2022-2028).
Westford, USA, Dec. 06, 2022 (GLOBE NEWSWIRE) — SkyQuest’s report on the magnesium market highlights the potential for growth in this sector. The report notes that, while magnesium production has traditionally been concentrated in China, there is increasing interest in developing magnesium deposits in other countries. This is due to the growing demand for magnesium-based products, particularly in the automotive and aerospace industries. It is the lightest structural metal known, making it ideal for use in aviation and aerospace applications. Additionally, magnesium has a high strength-to-weight ratio, making it ideal for use in automotive and construction applications.
However, the high cost of magnesium and the stringent environmental regulations are some of the factors restraining the growth of magnesium market. The analysis shows that Asia-Pacific is the largest market for magnesium, followed by North America and Europe. China is the leading country in terms of production and consumption of magnesium. Global magnesium production is volumed at 1,020 metric ton in 2021. Out of which, China produces over 80% of the magnesium.
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The automotive industry is the major end-use industry for magnesium market. Magnesium is used in various applications in automotive industry such as in seat frames, steering wheels, engine blocks, transmissions, and Forging Die Castings (FDCs). The construction industry is also a major end-use industry for magnesium. Magnesium alloys are used in various applications such as windows, doors, roofs, ceilings, flooring, and walls.
However, overcapacity is one of the key challenges in the magnesium market, which has led to falling prices and profit margins. This has caused some companies to change operations strategies in the market, and consolidation is expected to continue. The second challenge is the high cost of energy and raw materials, which are necessary for the production of magnesium. These costs are expected to increase in the future as China, which produces most of the world’s magnesium, continues to industrialize and eying to reduce export in order meet the in-house demand.
The report provides an overview of the magnesium market, including information on global production and consumption, major producers and consumers, and trends in trade. It also includes a SWOT analysis of the sector, identifying key strengths, weaknesses, opportunities and threats. SkyQuest’s report concludes that the magnesium industry has good prospects for growth in the future.
Die Casting Contributes Over 37% Revenue to Global Magnesium Market
Global magnesium market generates over 37% of its revenue from die casting applications. Die casting process is majorly used to create a desired shape of products. Wherein, magnesium is well-suited for die casting because it has a low melting point and is easy to cast. The majority of die-cast magnesium is used in the automotive industry. Automakers use magnesium to make engine blocks, transmission cases, and steering columns. In fact, over 38% of demand for magnesium in the die casting comes from the automotive industry. The growing demand for lighter-weight and more fuel-efficient vehicles is driving the demand for magnesium in the automotive industry. The increasing use of magnesium market in electronics manufacturing is also driving market growth.
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Magnesium die castings are used in a variety of automotive applications, including engine blocks, transmission cases, wheels, and suspension components. The aerospace industry is another major consumer of magnesium die castings. Magnesium die castings are used in aircraft engines, fuselages, and landing gear. In addition to being lighter than aluminum, magnesium has superior anti-corrosion properties, making it an ideal material for use in aircraft. The growing demand for lightweight materials is expected to drive the growth of the magnesium market over the next decade.
Apart from this, magnesium is also used in the electronics industry to make laptop cases, cell phone bodies, and electronic components.
Fluctuating Magnesium Prices is Affecting Profit Margin of Manufactures in Global Magnesium Market
Fluctuating magnesium prices have been affecting the profit margins of manufactures for some time now. The price of magnesium has been on a roller coaster ride in recent years, and this has taken its toll on companies that use the metal in their products. In September 2021, the price of magnesium reached an all-time high of $10,000 per ton. This was followed by a sharp drop in prices, and by December 2022, the price had fallen to $3,300 per ton. The steep declined as continued since past one year with the price rising back up to $7,500 per ton in January 2022.
This volatility has made it difficult for companies to plan their production costs and forecast their profits. Many companies have had to adjust their prices upward to compensate for the higher cost of magnesium, which has squeezed their margins. The situation is not expected to improve anytime soon, as the demand for magnesium is expected to continue to grow, while the supply remains tight. This could result in even more volatile prices in the future magnesium market.
In some cases, this has led to price increases for consumers or cuts in other areas of production. The situation is not likely to improve anytime soon, as global demand for magnesium is expected to continue growing. This will put even more pressure on prices and further squeeze profit margins for manufacturers.
The situation is made worse by the fact that there are only a few countries that produce magnesium. China is by far the largest producer, accounting for around 80% of total global production. This creates a situation where Chinese producers can effectively dictate prices on the international market.
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Major Players in Global Magnesium Market
- Alliance Magnesium (Canada)
- Esan Eczacibasi (Turkey)
- Latrobe Magnesium (Australia)
- Nippon Kinzoku Co. Ltd. (Japan)
- Shanghai Sunglow Investment (Group) Co., Ltd. (China)
- Solikamsk Desulfurizer Works (SZD)(Russia)
- U.S. Magnesium LLC(US)
- VSMPO-Avisma Corp. (Russia)
- Western Magnesium Corp. (Canada)
- Dead Sea Magnesium Ltd. (UK)
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