Magnesium Supplies - The Next Supply Problem
Posted: Tue Oct 19, 2021 8:32 am
I hope this is of some interest regarding another Major Supply Problem !
Obviously here on the Forum there are many concerns regarding the QQ J12 Deliveries or Lack Of due to the Chip Problem. But as we are all aware there are other problems and that is the Supply of Materials & Parts which affects the whole world not just Nissan.
Over the years High Tech Worldwide Manufacturing Plants were Shut Down, Equipment / Designs Bought or Sold Off and to who - China ! for basically what the manufacture of Cheaper Products & Bigger Profits !
Now the Shoe is on the other foot and the whole World is “Screwed Up” awaiting Parts etc from China who are also suffering with Major Shut Downs.
I am not sure if you have read the latest news but the next Big problem especially for the Auto Aero Industry is that of Magnesium Supplies. The metal is required in the entire aluminum value chain: in the automotive, aircraft, construction and packaging industries as well as in mechanical engineering and steel production - Dave
Some comments :
“In addition to the production problems caused by the global shortage of chips, German industry now also fears supply bottlenecks in the magnesium, which is urgently needed for the automotive and aircraft industry. “It is expected that the current magnesium stocks in Germany, and in all of Europe, will be exhausted in a few weeks at the end of November 2021 at the latest,” warned the Metals Association in a recently published position paper. The association appealed to the German government to “urgently initiate diplomatic talks with China” in order to ensure supplies to German industry. In the event of a supply bottleneck of the extent feared, there was otherwise the threat of “massive production losses”.
Cause energy saving in China :
“According to the association, 95 percent of Europe’s magnesium demand is currently covered by Chinese exports. However, as part of its efforts to reduce its own energy consumption, China has recently drastically reduced the production of magnesium. “Based on various sources, it can be assumed that at least 31 magnesium plants in the world’s most important magnesium production centers, the provinces of Shaanxi and Shanxi, have either been shut down or have had to reduce their production by 50 percent,” reported the trade association.”
China’s magnesium shortage threatens global car industry | Financial Times : https://www.ft.com/content/1611e936-08a ... 4f50133a4b
Obviously here on the Forum there are many concerns regarding the QQ J12 Deliveries or Lack Of due to the Chip Problem. But as we are all aware there are other problems and that is the Supply of Materials & Parts which affects the whole world not just Nissan.
Over the years High Tech Worldwide Manufacturing Plants were Shut Down, Equipment / Designs Bought or Sold Off and to who - China ! for basically what the manufacture of Cheaper Products & Bigger Profits !
Now the Shoe is on the other foot and the whole World is “Screwed Up” awaiting Parts etc from China who are also suffering with Major Shut Downs.
I am not sure if you have read the latest news but the next Big problem especially for the Auto Aero Industry is that of Magnesium Supplies. The metal is required in the entire aluminum value chain: in the automotive, aircraft, construction and packaging industries as well as in mechanical engineering and steel production - Dave
Some comments :
“In addition to the production problems caused by the global shortage of chips, German industry now also fears supply bottlenecks in the magnesium, which is urgently needed for the automotive and aircraft industry. “It is expected that the current magnesium stocks in Germany, and in all of Europe, will be exhausted in a few weeks at the end of November 2021 at the latest,” warned the Metals Association in a recently published position paper. The association appealed to the German government to “urgently initiate diplomatic talks with China” in order to ensure supplies to German industry. In the event of a supply bottleneck of the extent feared, there was otherwise the threat of “massive production losses”.
Cause energy saving in China :
“According to the association, 95 percent of Europe’s magnesium demand is currently covered by Chinese exports. However, as part of its efforts to reduce its own energy consumption, China has recently drastically reduced the production of magnesium. “Based on various sources, it can be assumed that at least 31 magnesium plants in the world’s most important magnesium production centers, the provinces of Shaanxi and Shanxi, have either been shut down or have had to reduce their production by 50 percent,” reported the trade association.”
China’s magnesium shortage threatens global car industry | Financial Times : https://www.ft.com/content/1611e936-08a ... 4f50133a4b