The EC is negotiating with China on magnesium deficiency

European Commission Conducts talks with China to alleviate severe magnesium deficiency. The commission announced this on Friday after industry groups warned of possible plant shutdowns that could affect millions of jobs. "The Commission is aware of the current magnesium deficiency affecting global supply chains and is closely monitoring the situation," a Commission spokesman said in an e-mail. He added that the commission had turned to Chinese partners to address the current shortcoming and was considering long-term solutions to eliminate this strategic dependence. With its supplies, China covers about 95% of the total magnesium consumption in the European bloc, but supplies have "dried up" since September, according to a statement by industry groups. "If left unchecked, thousands of companies across Europe are at risk, their entire supply chains and the millions of jobs that depend on them," dozens of industry groups, including metal manufacturers and car suppliers, warn in a joint statement. Magnesium reserves are expected to be depleted in Europe by the end of November. The Chinese government's efforts to reduce energy consumption have affected the production of many metals, including magnesium. Magnesium prices in China have more than doubled over the past year to $ 4,700 (€ 4,041.27) per tonne, the highest since 2008. "Magnesium deficiency should be discussed in the same international forum as semiconductor shortages," said the European Metals Association, Eurometaux. In the long run, Europe should examine whether it can restart domestic magnesium production after it ended in early 2000 due to low Chinese import prices, Eurometaux added.