In the last 12 months a hyperbolic price increase has been witnessed of all base metals traded on LME, with zinc rising 250% and aluminum 50%. So far magnesium is the only construction metal not following the trend.

In the last 12 months a hyperbolic price increase has been witnessed of all base metals traded on LME, with zinc rising 250% and aluminum 50%. So far magnesium is the only construction metal not following the trend.

The relative stability of magnesium prices is related to the low cost and technical simplicity of the melting process. An abundance of dolomite and sea water ensures unrestricted supply of the feedstock. Magnesium represents 2.74 percent of the Earth’s crust hence is the eighth most abundant element on Earth. Unlike zinc and aluminum, magnesium will most likely continue being in long term supply.
“Zinc die-casters are waiting for a market turn expected to restore the old, typical price levels. However, the consensus view from investment firms trading on the LME is that price levels will remain above US$ 3000 in a foreseeable future. The ever growing demand from China continues to lead a global increase of demand for zinc. Zinc futures (non-existent for magnesium) are traded on the London Metals Exchange (LME). A consequence of their quotation on the stock market is stock speculation increasing price movements much beyond the limits resulting from the changes of consumption demand. Such a situation is very beneficial for magnesium die-casters, who may offer high value engineering options to traditional users of aluminum and zinc– said Krzysztof Turowski, the Sales and Marketing Director of EUROMAG SA magnesium die casting foundry.
The global market of magnesium die-castings is expanding 15-20 percent a year. Advances in casting technologies and favorable market conditions shall further increase the rate of growth of the market for cast components, particularly in the area of substitution of zinc and aluminum high pressure die-castings.
EUROMAG SA is currently the largest and most modern magnesium die casting foundry in Poland, using hot-chamber technology. By the end of 2008 the number of machines will reach 18 making EUROMAG SA the largest factory of this type in Europe.