The European market is almost entirely (95 percent) dependent on China for the supply of magnesium, a key ingredient in aluminum used to make cars and building supplies, and iron and steel production.
Remaining magnesium stocks in Europe were trading at US$10,000-US$14,000 a ton, up from around US$2,000 per ton earlier this year, industry groups said.
Although the U.S. is less reliant on China for magnesium, its aluminum producers faced a similar supply issue.
The largest U.S. aluminum billet maker, Matalco, has warned of an upcoming output reduction, while the largest U.S. raw aluminum producer, Alcoa, has expressed concerns about magnesium scarcity.
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