news-room market-place products data-bank forum e-mail
magnesium. com
me info
SEARCH:
...

MAGNESIUM ENCYCLOPEDIA

ECONOMIC ASPECTS

MAGNESIUM REGIONAL PRODUCTION AND CONSUMPTION

COST COMPONENTS

FUTURE POSSIBILITIES

ECONOMIC ASPECTS
Production
19th century
Commercial production of magnesium started in Paris in the middle of the 19th century with the Deville-Caron process, which uses potassium to reduce magnesium chloride in a heated closed container. For several years, the world production of metallic magnesium was used mostly in wire or powder form for photographic purposes. Around 1860, Johnson Matthew & Co. in Manchester, England began British production using a similar process.

Table 1


In 1886 commercial production of magnesium by electrolysis of molten carnallite also started in Germany (Hemelingen) using a modification of Bunsen's cell. In 1896, the process was taken up by Chemische-Fabrik Griesheim-Elektron together with Aluminium und Magnesium Fabrik as the sole significant producer of magnesium metal in the world until 1914-1915.

1900-1950
By the beginning of the 20th century the worldwide production had only reached approximately 10 tons per annum. By 1915 the yearly production had risen to only 350 tons. However, within this period several other countries (notably the United States) had begun production. As a result, the worldwide annual output jumped to more than 3,000 tons by the last year of World War I, only to fall again to 330 tons in 1920.

By 1939, production was equal to 32,000 tons annually. World War II brought an extreme tenfold production rise that was followed by a decline in the late 1940s.

1950-1989
World production of primary magnesium in the five-year periods 1963-1967 and 1983-1987 is summarized in Table 2. Growth in the interval between these periods occurred primarily in Norway, the Soviet Union, and the United States. During 1983-1987 the United States had been the largest producer (ca. 40% of the world total), followed by the Soviet Union (28%) and Norway (15%). Total production of magnesium in the Western world in 1988 was 241,000 tons.

Table 2

1990-1999
During the 1990s, magnesium production in the Western world had been close to 250,000 tons per annum, which represents approximately 90% of productive capacity. In addition, the annual estimated capacity of the Commonwealth of Independent States had been 50,000 tons, and that of the People's Republic of China had been 50,000 tons.

In 1996, over 347,000 tons of magnesium had been produced worldwide; consequently, the value rose to 375,000 tons of magnesium in 1999. Three American companies placed in Texas, Utah, and Washington produced primary magnesium in 1996 valued at approximately $514 million. The value declined within a year and was equal to $378 million in 1998 and $374 million in 1999.

2000-today
At the beginning of 2001, two companies in Utah and Washington produced primary magnesium in the US, but by yearend, only the company in Utah remained in production. An electrolytic process had been used in Utah to recover magnesium from lake brines, and a thermic process had been used to recover magnesium from dolomite in Washington.

With the introduction of the new 2002 model cars, industry executives estimated that the average magnesium content in a car will increase to 4.1 kg (9 pounds) compared with 3.9 kg (8.5 pounds) for the 2001 year model. Magnesium producers and automotive manufacturers were developing new families of creep-resistant magnesium alloys that may have the potential to replace aluminum and iron in some large powertrain components such as engine blocks and transmission cases; this could increase the use of magnesium in automotive applications.

The presumed world total magnesium production is estimated to have been over 432,000 tons in 2002.

Consumption
1970s
Since the oil crises in the early 1970s, magnesium consumption has fluctuated in line with other commodity materials dependent on changes in the industrial growth in major consumer countries. The consumption data is given in Table 3.

1980s
In 1988 world consumption was equal to 255,000 tons, including 13,200 tons exported to Eastern countries. Approximately 75% of the total world magnesium production (1989) is electrolytic and 25% metallothermic.

In accordance with the International Magnesium Association information, the main Western consumer regions within the period were North America (125,000 tons), Latin America (11,700 tons), Europe (73,300 tons), Africa and the Middle East (3,800 tons), and Asia-Oceania (37,200 tons) The per capita consumption was 0.51 kg in the United States, 0.18 kg in Japan, 0.17 kg in Western Europe, and 0.04 kg in South America.

The per capita consumption of magnesium in selected countries is summarized in Table 3. During 1983-1987, the United States had had the highest consumption, followed by the Soviet Union and Japan.

Table 3

Figure 1


1990-1999
The Western world consumption of magnesium in 1997 was equal to 333,700 tons including aluminum alloying (44%), pressure die castings (used for magnesium alloys) (28.5%), desulfurized steel (14%), nodular cast iron (4%), electrochemical (2.5%), chemical (used for magnesium alloys) (2%), metal reduction (1.5), wrought products (1%), gravity die castings (0.5%) and other (2%).

Increased domestic consumption of aluminum resulted in an accompanying increase in magnesium consumption in 1994. Also, additional quantities of aluminum-base new scrap were generated, again with a similar increase in magnesium recovered from this source. Die casting continued to grow and has become the second largest market for magnesium, after aluminum alloying.

In 1994 GM announced it was completing plans for three new magnesium alloy automobile components that were projected to consume about 5,000 tons of magnesium annually.

Reported consumption of primary magnesium decreased in 1996, mainly because of a drop in demand for magnesium used in aluminum alloying. Aluminum alloying remained the largest end-use application for magnesium, however, representing not more than 51% of the total reported primary consumption; this percentage has been decreasing over the last few years as structural applications continue to grow. Structural uses, mostly die casting, accounted for 24% of total reported consumption.

Consumption of magnesium alloys for automotive applications continued to grow in 1996. The 1997 year model cars were estimated to contain an average of 2.9 kilograms per vehicle, an increase of 16% from the 1996 level of 2.5 kg.

In 1997, aluminum alloying remained the largest end-use of magnesium with about 50% of total primary consumption. This percentage declined from the 1996 level, due to significant increase in the use of magnesium alloy for die casting. Increased automotive industry usage of magnesium was responsible for the large increase in production of magnesium alloys die castings.

In 1997, automotive industry analysts estimated that the average unit content of magnesium die castings in North American built cars and light trucks will increase by 0.3 kg per vehicle from the 1997 year model to the 1998 year model. This increase represents an increase of 4,500 tons in total usage. The total magnesium content in each vehicle would average 2.9 kg.

Aluminum alloying again remained the largest end-use for primary and secondary magnesium in 1998. Reported consumption of primary magnesium for aluminum alloying was 48% of the total. Die casting was the second-largest application, with 19% of the total reported consumption, and desulfurization of iron and steel ranked third, with 11% of the total. In 1999, the corresponding parameters were 44% for aluminum alloying, 32% for die casting, and 7% for desulfurization of iron and steel.

2000-today
In 2000, aluminum alloying stayed the largest end application for primary and secondary magnesium. Reported consumption of primary magnesium for aluminum alloying was 53% of the total. Die casting was the second largest application with 23% of the total reported consumption, and desulfurization of iron and steel, again, ranked third with 12% of the total. In addition to primary magnesium, significant quantities of secondary magnesium are used in iron and steel desulfurization reagents. The total primary magnesium consumed in the United States in 2000 declined by 21% from that of 1999; much of this decline was recorded in the die casting sector. Since this application continues to be a growth area for magnesium metal consumption, the drop in 2000 was attributed to the overall slowdown in the US economy.

In 2001, magnesium was a constituent of aluminum-base alloys that were used for packaging, transportation, and other applications, which accounted for 44% of the total domestic consumption. Desulfuriazation of iron and steel accounted for 7% of US consumption of primary metal; reducing agent in nonferrous metals production, 1%; and other uses, 3%.

In the first half of 2002, the largest magnesium end-use was aluminum alloying, which accounted for 30% of domestic consumption. Structural uses of magnesium (castings and wrought products) accounted for 30% of domestic primary metal use. Desulfurization of iron and steel accounted for 12% of US consumption of primary metal; reducing agent in nonferrous metals production, 1%; and other uses, 4%.

Exports of magnesium through February 2003 were about 37% higher than those in the same period of 2002. Total magnesium exports for 2002 were about 30% higher than those in 2001. Canada (70%), Mexico (14%), and the Netherlands (11%) were the main destinations.

Magnesium imports through February 2003 were 18% higher than those in the corresponding period of 2002. Russia (75%), Israel (14%), and Canada (9%) were the principal sources of imported metal. Canada (53%) and China (45%) were the principal sources of imported alloys. Total imports of magnesium in 2002 were 28% higher than those in 2001.

Canada (50%), Russia (19%), China (13%), and Israel (9%) were the primary sources of magnesium and magnesium alloys in 2002. Of the total magnesium imports in 2002, 48% was alloy and 34% was pure metal.
HOME | ABOUT US | CONTACT US | ADVERTISE WITH US
© 2000-2010 Magnesium .com. All rights reserved.