Automotive, magnesium is also missing after the chips. China slows down exports

by time news

Semiconductors were not enough, now the magnesium blow is also coming to the automotive sector. The associations that bring together the European industries of the metal and steel supply chain, up to the automotive, including Eurofer, European Aluminum and Acea, sound the red alarm for the lack of magnesium, a key material for alloys, widely used in steel and metallurgical production. Industrialists report “critical supply shortages” of magnesium from China, due to the country’s energy crisis.

Magnesium, China blocks exports

Europe largely depends on the Asian giant for imports of this metal, to the extent of 95%. Without “urgent” action by the EU, industry associations warn, this situation “threatens thousands of businesses in Europe, their entire supply chain and millions of jobs”.

The shortage of supplies from China “has already produced record prices and distortions in the chain at the global level”, they point out. Today, imports of magnesium are quoted at “extortion” prices, five to seven times higher than a year ago. Europe “could run out of magnesium stocks by the end of November, with production shortages, business closures and job losses to follow”. Industries are therefore asking EU governments and institutions to work “urgently” with their Chinese counterparts to find solutions.

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