As far as the raw material magnesium is concerned, China has almost a monopoly.
However, since exports are stalling, German industry is threatened with enormous costs.
Yulin / Kassel - Although magnesium is not a rare earth, the People's Republic of China has more and more usurped the market in recent years.
Around 90 percent of global production comes from China, reports focus.de.
Only small amounts are said to come from Russia, Kazakhstan and Iceland.
Accordingly, Europe, and thus also Germany, sources the element mainly from East Asia.
The magnesium deficiency feared by the auto industry for some time now seems to be a reality.
The reason: China is shutting down production in order to limit energy consumption in the region around the city of Yulin.
China reduces production of magnesium: worries in German industry are growing
The problem: Magnesium does not occur naturally in pure form, but rather bundled in numerous mineral compounds.
The element must therefore be detached from the connections in melting furnaces.
According to the report by focus.de, the minerals are heated to more than 1000 degrees for the complex process.
The announced goal of the Chinese to reduce energy consumption and the associated emissions cannot be reconciled with the recently high magnesium production.
As reported by faz.net, 30 magnesium manufacturers have reduced their production by 50 percent since the summer in order to comply with Chinese environmental protection regulations.
In addition, 15 manufacturers would have had to stop production entirely - if only temporarily by December.
Since then, China has hardly exported any magnesium.
The development is causing great concern for German metalworking companies and car manufacturers.
Because while the element can be used to manufacture many parts for machines, magnesium alloys are extremely important, especially in the construction of vehicle bodies.
Dependence on China: A lack of magnesium can be expensive for Germany
The Metals Association, in which the manufacturers of light metals are organized in this country, fears that German magnesium stocks will be exhausted by the end of November.
If this is not the case and an export ban does not come about by then, the price of the mineral is likely to become very expensive.
According to a report by faz.net, the price has doubled since mid-August.
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In China, however, there is a rather relaxed view of the matter.
In an interview with the FAZ, Sun Qian, Secretary General of the China Magnesium Association, assured that no ban would currently be imposed on the export of the raw material.
"The global scarcity is the result of low stocks, not because we don't want to sell magnesium," said Qian.
The fact that German industry is now in such a mess shows the "risk of making the domestic economy dependent on Chinese imports." (Nail Akkoyun)
Not only magnesium is affected: Due to the rising prices of many raw materials, purchasing in the hardware store is becoming more expensive *.
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