No more cheap magnesia from China
There is considerable focus on the ramifications of the pandemic and ongoing issues surrounding Chinese magnesia supply. Since 2019, while there had been a period of unprecedented challenge and disruption, the industry had also been very busy corporately and strategically.
The key highlights of MgO market:
- End-game for easy, low cost Chinese mineral supply?
- Many magnesia traders/consumers should be evaluating, or re-evaluating, & co-operating, with alternative sources to China elsewhere in the world; vertical integration
- Perhaps more support from governments now recognising “criticality” and “essentiality” of minerals and supply chains
- At same time, taking a serious view on using and developing (more) use of recycled refractory material with suppliers and users co-operating on technical and investment aspects
- Decarbonisation in mine and plant operations
- Impact of changing fuel sources in steel, cement, glassmaking, eg. hydrogen, more EAF
- Ongoing logistics challenges through to 2023
Changing times mean a changing market mindset. Attention needs to be paid to climate change and CO2 reduction; a shift towards renewable energy concepts; while sustainability is becoming a precondition.
While key tasks now include multiple source strategy, increased flexibility in product specification, and a focus on security of supply chains, these are supported with the traditional values of reliability, honesty, and availability of product.
While key tasks now include multiple source strategy, increased flexibility in product specification, and a focus on security of supply chains, these are supported with the traditional values of reliability, honesty, and availability of product.
