Your trusted source for investing success

Tag: magnesium demand

Magnesium Outlook 2015: Demand to Increase Gradually

For our 2016 magnesium outlook, please see: Magnesium Mining Outlook 2016.

There hasn’t been much news on the magnesium front in 2014, and with China producing most of the world’s magnesium, the industry isn’t the easiest to keep track of.

However, with the metal having potential uses in magnesium-ion batteries, planes and bikes due to its strength and light weight, critical metals investors might want to know what’s ahead for magnesium in 2015. To that end, Magnesium Investing News got in touch with E. Lee Bray, acting USGS mineral commodity specialist for magnesium, to find out a little bit more about what’s been going on in the space.

While Bray doesn’t provide investment advice or make formal quantitative forecasts about the market, he was able to provide some valuable insight into the magnesium space.

First, he noted that perhaps the biggest news in the industry this year was a proposed tax change for mining companies in Israel. That spurred concern about the possible shutdown of Israel Chemicals’ (NYSE:ICL) Dead Sea Magnesium. However, Bray cautioned that while the “public fight” may have been interesting, the issue was essentially a non-event for the magnesium space.

“Although interesting, this did not have any measurable direct impact on the market as the proposed tax and the threatened shutdown would not have occurred until 2017,” he said.

Not surprisingly, Bray said that those looking at the magnesium market should pay attention to what’s happening in China going forward. For example, he noted that new policies aimed at reducing pollution or conserving power could possibly affect magnesium production.

“The government of China and also some provincial governments have ordered the shutdown of producers of other energy-intensive products in the past at times when prices have been low,” he explained. “With magnesium demand in China soft relative to production, regulatory steps could be taken to force older, less efficient capacity to shutdown permanently.”

Bray also noted that such an event would have more of an effect on magnesium prices in China, Europe and elsewhere than in the United States, as that country has put up punitive tariffs on imports of the metal from China.

Finally, in terms of companies to watch, Bray suggested keeping an eye on those proposing new capacity, such as the country’s only primary magnesium producer, US Magnesium. He also noted that another company, Nevada Clean Magnesium (TSXV:NVM) is looking at developing a magnesium plant from a dolomite deposit at its Tami-Mosi project. To be sure, there are a number of companies looking at magnesium production outside of China, but it isn’t clear yet which projects will be viable.

“Other companies propose to produce magnesium from other sources such as olivine, asbestos mine tailings and coal ash in Norway, Canada and Australia, respectively,” said Bray. “It is yet to be determined if the proposed projects will prove to be competitive or attract the financing needed, but it is worth watching these companies.”

 

Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.

By Shihoko Goto — Exclusive to Magnesium Investing News

Demand for magnesium has been sluggish in recent months, with Chinese exports of the metal falling nearly 16 percent in January from a year ago to 14,391 tonnes at an average price of $3,068 a tonne, according to Chinese customs data. Prices have been trending lower too, trading in the range of $3,050 to $3,150 a tonne in February and March. A year ago, magnesium was trading in the range of $2,800 to $2,900 a tonne.

Traders have pointed out that China has been restricting its production as well as exports of magnesium. This restrictive export policy has officially been challenged by the United States, the European Union, and Japan, and is to be considered by the World Trade Organization in mid-March. Looking ahead, traders anticipate an increase in magnesium demand in the second quarter as the manufacturing sector picks up.

Enter Your Log In Credentials
×

Privacy & Legal Policy

This website is part of the Investing News Network published by Dig Media Inc.

Overview

INN's mission is to be the world's number one source of independent, unbiased news and education helping investors realized their financial goals. We also strive to be internationally respected for our integrity, our people and our commitment to excellence. Therefore, we are very concerned with the privacy rights of our audience and are committed to protecting the information collected about you.We have taken extensive measures to protect the confidentiality of your personal information and to protect your data from misuse and unauthorized access or disclosure. Unfortunately, no data transmission over the Internet can be guaranteed to be 100% secure. As a result, Dig Media cannot ensure or warrant the security of the information you transmit to us and you do so at your own risk.

Contact Information

Our postal address is

L200 - 560 Beatty Street,

Vancouver, BC V6B 2L3

We can be reached via e-mail at info@digmediasolutions.com or telephone at +1-604-688-8231

Information Collected

For each visitor to our website, our web server automatically recognizes no information regarding the domain or e-mail address.

We collect information volunteered by the visitor, such as survey information and/or site registrations, name and address, telephone number.

The information we collect is used to notify visitors about updates to our website, shared with other reputable organizations to help them contact visitors for marketing purposes.

With respect to cookies: When you visit our websites, we send one or more cookies, a small file containing a string of characters, to your computer that uniquely identifies your browser during your visit. We use these cookies to maintain your connection as you move from page to page, and to ensure anything you submit, such as a comment or a form, is not rejected. You can reset your browser to refuse all cookies or to indicate when a cookie is being sent. However, some website features or services may not function properly without cookies.

If you do not want to receive e-mail from us in the future, please let us know by sending us e-mail at the above address.

Persons who supply us with their telephone numbers on-line may receive telephone contact from us with information regarding new products and services or upcoming events. If you do not wish to receive such telephone calls, please let us know by sending us e-mail at the above address.

Ad Server

With respect to Ad Servers:

Other third-party companies which place advertising on our site may collect information about you when you view or click on their advertising through the use of their cookies or other tracking technologies, which may include delivering targeted advertisements and marketing messages based upon the third party websites that you visit, or other purposes. We cannot control this collection of information and are not responsible for the privacy policies and data collection, use and disclosure practices of these third party advertisers. You should contact these third party advertisers directly if you have any questions about their use of the information that they collect from you. Google-DoubleClick DFP is our third party ad server. If you would like to know more about their information gathering practices and opt-out procedures, please see Google ad policies.

Also, if you would like more information about this practice and to know your choices about not having this information used by these companies, please see NAI Opt-out Options.

Information Use

We only share personal information with other companies or individuals outside of the cases outlined above in the following limited circumstances:

We may share with third parties certain pieces of aggregated, non-personal information, such as the number of users who searched for a particular term, for example, or how many users clicked on a particular advertisement. Such information does not identify you individually.

Remarketing

We may remarket your information. Remarketing is a way for us to connect with users, based upon your past interactions with INN websites. Third-party marketing vendors may be hired by INN to perform remarketing services. As a result, third-party vendors, including Google, may show INN ads on sites on the internet. Third-party vendors, including Google, use cookies to serve ads based on a user's prior visits to INN websites.

To opt out of customized Google Display Network ads click here. To find out more about how Google uses any data it collects please visit http://www.google.com/privacy_ads.html.
Any information collected is used only for remarketing purposes and will not be used by them for any other purpose.

Future Use

From time to time, we may use visitor information for new, unanticipated uses not previously disclosed in our privacy notice. If our information practices change at some time in the future we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Accessing Your Data

Please contact us at the address above for any additional questions about the management or use of personal data.

Upon request we provide site visitors with access to communications that the visitor has directed to our site (e.g., e-mails, customer inquiries), contact information (e.g., name, address, phone number) that we maintain about them.

Visitors can access this information by e-mailing us at the above address.

Upon request we offer visitors the ability to have inaccuracies corrected in contact information.

Visitors can have this information corrected by sending us e-mail at the above address.

Security

With respect to security: We have appropriate security measures in place in our physical facilities to protect against the loss, misuse or alteration of information that we have collected from you at our site.

Your Acceptance of These Terms

By using this site, or by submitting personal information to us, you signify your agreement to Dig Media's Privacy Policy and Terms of Use. From time to time we may change or update our piracy policies. It is your responsibility to check back regularly to inform yourself of such changes. Your continued use of this or any Dig Media website following the posting of changes to these terms will be deemed as your acceptance of those changes.

The foregoing policies are in effect as of August 1, 2012. Dig media reserves the right to change this policy statement at any time by posting the revised policy to this website. This statement and the policies outlined herein are not intended to and do not create any contractual or other legal rights in or on behalf of any party.

If you feel that this site is not following its stated information policy, you may contact us at the above addresses or phone number.

×
Investing News Network