Over the past two decades, China’s magnesium industry has rapidly risen from its nascent stage. Now it become a global leader, demonstrating strong growth momentum. From the statistics, all the Magnesium ingot manufacturer had production capacity stands at 1.3646 million tons. The output reaching 0.9333 million tons and capacity utilization rate at 68.39%.
Magnesium, as a lightweight and high-strength metal material, boasts a density of only around 1.8g/cm3, significantly higher strength-to-weight ratio compared to steel and aluminum alloys. Its application in product components effectively promotes lightweight construction and contributes to significant energy savings and emission reductions.
Magnesium exists in nature in both solid and liquid forms, with solid forms. The Mg ores including magnesite, dolomite, and serpentine, while liquid sources comprise seawater, natural salt lake water, and underground brine. Refined magnesium ingot can be obtained through processes such as silicothermic reduction or molten salt electrolysis from crude magnesium.
In all, Magnesium Ingot Manufacturer enjoyed the high-speed develepment of the industry. However, in 2023, facing pressures from internal and external environments, magnesium industry encountered unprecedented negative growth for the first time. Influenced by multiple factors such as macroeconomic downturns, global industrial chain adjustments, and weak downstream market demand, both the export volume and domestic consumption of Magnesium 99.9 and 99.95 ingot witnessed declines. The main reasons for the decline include:
Mg Ingot Manufacturer Face the Market Decline
Weakening downstream demand: The uncertain global economic situation and sluggish consumer markets have affected industries reliant on magnesium materials. For example, automotive components, electronics, real estate, leading to reduced demand for magnesium and magnesium alloys.
Strategy adjustments in the automotive components industry: The significant driver for the development of the magnesium industry—automotive lightweighting—may have seen some automotive companies shifting towards other alternative lightweighting materials. This is due to diverse choices in electric vehicle technology routes and cost pressures. As result, a slower-than-expected growth in magnesium applications in the automotive sector.
Underdeveloped new application markets: While fields like magnesium alloy construction templates and rail transit vehicles hold potential application prospects, their immature technological and market readiness have hindered large-scale commercialization, failing to effectively drive overall market demand growth.
Bottlenecks in high-end applications: Industries with stringent requirements for material performance. Such as aerospace and medical devices demand highly of magnesium materials. Despite magnesium’s lightweight advantages, it still faces technical challenges in practical applications. This limiting its penetration rate in these high-value-added fields.