Power shortages in China, specifically in Shaanxi and Shanxi provinces, are leading to shortages of magnesium.
Those two provinces are the world’s main magnesium production hubs
- 25 plants had to shut down
- 5 further plants cut production by 50%
Magnesium is a key material used in the production of aluminium alloys,
- used in the production of car parts, building materials and more
- China produces more than 85% of the world’s supply
The reports have been around for a week or more but fears are ramping up further. Check out this (ungated) report, which highlights:
- “A magnesium shortage could trigger a shortage of [usable] aluminium, which in turn could also hit car production,” BofA Securities analysts told clients last week,