After memory chips, magnesium is now running out – stocks could be exhausted by the end of November – China plays a decisive role – a share is happy

According to the Metals Association, 95 percent of Europe’s magnesium demand is currently covered by Chinese exports. However, as part of its efforts to reduce its own energy consumption, China has recently drastically reduced the production of magnesium. “Based on various sources, it can be assumed that at least 31 magnesium plants in the world’s most important magnesium production centers, the provinces of Shaanxi and Shanxi, have either been shut down or have had to reduce their production by 50 percent,” reported the association.

The situation could quickly worsen

In addition to the production problems caused by the global shortage of chips, German industry now also fears supply bottlenecks in the magnesium, which is urgently needed for the automotive and aircraft industry. “It is expected that the current magnesium stocks in Germany, and in the whole of Europe, will be exhausted in a few weeks at the end of November 2021 at the latest,” warned the Metals Association in a recently published position paper. The association appealed to the federal government to “urgently initiate diplomatic talks with China” in order to secure supplies for German industry. Otherwise, there was a risk of “massive production losses” in the event of a supply bottleneck of the extent feared.

The metal is required in the entire aluminum value chain: in the automotive, aircraft, construction and packaging industries as well as in mechanical engineering and steel production.

Eramet has been on the upswing for days

With such bottlenecks, the stock exchange traders do not sleep and immediately try to find alternatives. The share of the French mining and metallurgy company has already benefited from the impending bottlenecks and gained around 16 percent within 5 trading days. Investors who want to look around now in the area will also meet some little explorers from Australia. Caution is advised with these values. Here the investment can sometimes vanish into thin air – the risk is significantly higher here.

Editorial team onvista / dpa-AFX

Foto: PhotoMediaGroup /

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