The Economics of Magnesium Compounds & Chemicals (10 ^th Edition, 2005)

ARTICLE

Roskill ed. 27 a Leopold Road 
London SW 19 7 BB England UK 
Price 3415 euros 
Tel. : (+ 00 44) 20 8944 0066 
Fax : (+ 00 44) 20 8947 9568 
<info@roskill.co.uk> 

This book explains that the combination of slow growth in crude steel production and improved refractory specifications and applications continues to reduce consumption of refractories worldwide. Refractories are such an important market for magnesia that the decline in this market is estimated to have more than halved total magnesia consumption in most industrialised countries over the last thirty years. 
Over the next three years to 2008, Roskill forecasts a halt in this decline with average annual growth of 1.5 % to 2 % py. This increase will be driven by an increased demand from the refractory sector in China and growth in demand for caustic calcined magnesia and magnesium hydroxide in non-refractory applications.

Location of magnesia capacity 

The majority of global magnesia capacity is located in the centrally planned and former centrally planned economies of China, North Korea and Russia. Producers in these three countries have the capacity to produce over 6Mtpy of dead burned magnesia from magnesite, or over 75 % of global dead burned magnesia capacity based on magnesite. 
In developed economies, such as Japan, the USA and Western Europe, magnesia capacity based on magnesite is estimated at just 0.7 Mtpy out of a world total of 10 Mtpy. However, around 80 % of global synthetic magnesia capacity (estimated at almost 1 Mtpy) is located in these countries. 

Potential growth markets for magnesium chemicals 

One of the main areas of growth in demand for caustic calcined magnesia (CCM) and magnesium chemicals in recent years has been agriculture. The growing world population and changing dietary patterns means that intensive methods of arable farming and animal husbandry are becoming more widely used. Magnesium is often added to soil, usually in the form of dolomite, while CCM is more often used as a feed supplement for livestock. Roskill estimates that consumption of caustic calcined magnesia will grow by an average of 2 % py, from 400,000t to 425,000t between 2005 and 2008. 
Roskill estimates world consumption of magnesium hydroxide flame-retardants at around 55,000tpy. In the long term, environmental legislation restricting the use of brominated flame-retardants, combined with opportunities created by the limitations of alumina trihydrate, could increase consumption of magnesium hydroxide in flame-retardants. 

Price of dead burned magnesia rise 

The price of dead burned magnesia rose by over 25 % in 2004, which was the first increase since the late 1990s. However, the increase in published Chinese magnesia prices was caused by sharp rises in costs of production such as power, transport and raw material costs, not by producers taking advantage of supply shortages. The long-term price of dead burned magnesia and fused magnesia will be largely determined by rising Chinese consumption in refractories and the amount of material exported from China. 

Chinese export controls 

The entry of China into the World Trade Organisation (WTO) in December 2001 impacted on all policies regarding fees, export licensing or import duties imposed by the state authorities, whether in China or the EU. The participation of China in the WTO will make both Chinese and WTO countries mutually accessible. Prior to 2001, there was very little foreign investment in the Chinese magnesia industry. Several foreign refractory companies including RHI, Shinagawa, Krosaki and Orissa are now involved in refractory plant joint ventures in China. 

Jean Durlach  
Président de la SDRM 
Rédacteur en Chef de Magnesium Research  
64 rue de Longchamp, 
F-92200 Neuilly-sur-Seine, France 
Tél. : + 33 (0)1 40 88 38 69 
Fax : + 33 (0)1 40 88 36 13 
<jean.durlach@wanadoo.fr> 

Michel Bara 
Université Pierre et Marie Curie 
Bât. A - 6^e étage 
4 Place Jussieu 
F-75252 Paris Cedex 05, France