First coal, now also magnesium. China continues to be the source, despite itself, of Europe’s concerns. Threatening its post-Covid recovery. If the increase in demand for coal caused by the energy crisis of recent weeks had led to a shortage of fossil fuels and therefore to an increase in the price, this time it is the absence of a chemical element such as magnesium, which can potentially impact devastating on a number of European industries, starting with the automotive one. Also affecting employment levels in a very delicate phase such as that of post-pandemic recovery.
German Chancellor Angela Merkel and Czech Prime Minister Andrej Babiš underlined the gravity of the situation last Thursday during a summit of European Union leaders, where they declared that the production of magnesium in China has now become “too expensive” to be able to effectively meet the needs of the European industry. The problem is that Europe largely depends on the Asian giant for imports of this metal, to the extent of 95%. A percentage that is sensational to say the least, which cannot leave the Old Continent calm and in particular the sectors most exposed to the lack of magnesium, vital for the automotive, steel, metallurgical, aeronautical and electronic sectors.
So much so that in recent days, the associations that bring together the European industries of the metal and steel supply chain, up to the automotive sector, including Eurofer, European Aluminum and Acea, have launched a very clear red alert. 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 prices of magnesium imports from China are called “extortion”, five to seven times higher than a year ago.