China's export volume of magnesium products reaches an all-time high in 2021

Customs statistics show that in 2021, China exported a total of 477800 tons of magnesium products, an increase of 21.3 percent over the 393800 tons exported in 2020, with a cumulative export value of US $1.936 billion, an increase of 101.2 percent over the same period last year. In 2021, the export price of magnesium products was 4052.3 US dollars per ton, an increase of 65.8 per cent over the same period last year.

Reviewing historical data, the previous peak of magnesium exports was 460000 tons in 2017. In 2021, although China's magnesium industry and magnesium market have encountered many sudden external shocks, pressures and challenges, as well as a variety of changes and adjustments within the industry, however, the export volume, export amount and export unit price of China's magnesium products are all at an all-time high.

Of these, magnesium ingots exported 281300 tons in 2021, up 38.2 percent from 203500 tons in 2020; magnesium alloy exports totaled 108700 tons, up 1.4 percent from 107200 tons in 2020; magnesium powder and grains exported 76900 tons, up 11.6 percent from 68900 tons in 2020; and the cumulative export volume of forged magnesium (magnesium processing materials) was 2600 tons, basically the same as the same period last year. The export volume of magnesium products was 5200 tons, up 4% from the same period last year, and the total export of waste magnesium was 3400 tons, down 48.5% from the same period last year.

In December 2021, China exported 54000 tons of magnesium products, an increase of 2.2 percent over November and 32.4 percent over the same period in 2020. Among them, 30865 tons of magnesium ingots, 12873 tons of magnesium alloys, 9349 tons of magnesium powder and grains, 9349 tons of forged magnesium (magnesium processing materials), 402 tons of magnesium products and 384 tons of waste magnesium are exported.

Overall, magnesium exports recovered rapidly from October to December 2021 after a sharp rise in magnesium prices and a 23.3% drop in exports in September 2021. In fact, China's magnesium exports never stopped, but suddenly declined in September 2021 and then recovered. In other words, the recent domestic and foreign concerns about "the depletion of EU magnesium stocks due to China's reduction in exports" and "interruption of the automobile supply chain" did not happen, but overreacted and alarmist.

Despite the complex reasons, different comments and hidden worries leading to this result and situation, the production and supply of magnesium in China has maintained growth, ensuring the basic demand and supply of magnesium in the industrial chain at home and abroad. Global aluminum, automotive, construction, packaging, chemical, pharmaceutical, new energy and other manufacturing and livelihood fields have not had a significant impact on magnesium supply chain. This is in the context of unprecedented difficulties such as China's declining economic growth, sluggish market effective demand, frequent COVID-19 epidemic and natural disasters, sharp rise in raw materials, double control of energy consumption, mismatch in the supply chain, poor transportation of foreign trade exports, and so on. Behind this, there are the correct grasp and guidance of the state, the timely adjustment of government departments and agencies, the perseverance and hard work of magnesium enterprises in a complex environment, and the hard work of employees in the industrial chain under difficult situations. what is more, there are export enterprises to withstand pressure and risks under the sharp fluctuations of the market, and their efforts to protect exports, foreign trade and reputation.

Although there are different views and new judgments on the export of double-high products and primary products, under the current situation, we should objectively look at the current situation of the industrial structure and the stage of industrial development. Fully understand and attach importance to the important role of traditional product exports in stabilizing employment, finance, foreign trade, expectations, employment, basic livelihood, market main body, industrial chain supply chain stability, grass-roots operation tasks, local economic development and social stability. Therefore, although a considerable number of market participants still have a lot of dissatisfaction, worry and uncertain understanding of the current magnesium market situation, and the government has new specific requirements for the high-quality development ability and level of magnesium enterprises, however, it is still necessary to stabilize and protect the development status and pattern of magnesium industry and magnesium market under the background of domestic and foreign trade integration, and affirm the historical contribution and practical role of existing enterprises and industry chain. In the next step, the introduction of relevant regulation and control policies and rectification measures should be positive, prudent and prudent.

What needs to be sober is that since October 2021, foreign users have a strong intention to overbuy and increase hoarding, the increase in export volume does not mean an increase in foreign magnesium consumption, and the growth rate of magnesium ingot exports is much greater than that of other products. it indicates that the growth potential of foreign magnesium alloy market is still very limited, even has shrunk. Under the circumstances of the domestic new production capacity, the gradual increase of re-production capacity and the start-up of the electrolytic magnesium process of sponge titanium enterprises, how to digest the future original magnesium production will be a topic that should be prepared in advance.