Magnesium

Magnesium is a silvery-white, light, and fairly tough, metallic element and is relatively stable. Magnesium is one of the alkaline earth metals and has the atomic symbol Mg and atomic number 12. Magnesium is the eighth most abundant element in the earth’s crust and the third most plentiful element found in seawater. Magnesium is ductile and malleable when heated, and with the exception of beryllium, is the lightest metal that remains stable under ordinary conditions. First isolated by the British chemist Sir Humphrey Davy in 1808, magnesium today is obtained mainly by electrolysis of fused magnesium chloride.

Magnesium compounds, primarily magnesium oxide, are used in the refractory material that line the furnaces used to produce iron and steel, nonferrous metals, glass, and cement. Magnesium oxide and other compounds are also used in the chemical, agricultural, and construction industries. Magnesium’s principal use is as an alloying addition for aluminum. These aluminum-magnesium alloys are used primarily in beverage cans. Due to their lightness and considerable tensile strength, the alloys are also used in structural components in airplanes and automobiles.

Prices – The price of magnesium in 2002 fell into the range of $1.10-1.22 per pound from $1.21-1.28 in 2001. The 2002 level was a 22-year low going back to 1980 when the price range was $1.07-.25.

Supply – World primary production of magnesium in 2002 rose slightly by +0.2% to a record high of 429,000 metric tons from 428,000 metric tons in 2001. The world’s largest primary producers of magnesium are China with 230,000 metric tons of production in 2002, the US with production of 106,000 metric tons (in the latest data available for 1998), and Canada with 80,000 metric tons.

World secondary production of magnesium in 2001 fell –18% to a 13-year low of 75,700 metric tons from 92,300 metric tons in 2000. The largest secondary producer of magnesium by far is the US with 87% of world production in 2001, followed by Japan with 10.3% of world secondary production. US secondary production of magnesium in 2001 fell 20% to 65,800 metric tons, which is about two-thirds that of US primary production.

Demand – US consumption of magnesium for structural products in 2002 rose +0.6% to 48,302 metric tons from 47,992 metric tons in 2001. Of the structural product consumption category, 96% was for castings and the remaining 4% was for wrought products. US consumption of magnesium for aluminum alloys fell –0.3% to 34,900 metric tons from 35,000 metric tons in 2001. The consumption category for magnesium of “other uses” rose by +1.6% in 2002 to 12,900 metric tons.

Trade – US exports of magnesium in 2002 rose +29.6% to 25,400 metric tons from 19,600 metric tons in 2001, which was a 26-year low going back to 1976. US imports of magnesium in 2002 rose +28.5% to 88,000 metric tons from 68,500 metric tons in 2001.