{"id":5870,"date":"2021-12-16T11:37:18","date_gmt":"2021-12-16T09:37:18","guid":{"rendered":"https:\/\/www.makelaalu.fi\/?p=5870"},"modified":"2021-12-16T12:04:35","modified_gmt":"2021-12-16T10:04:35","slug":"the-limited-availability-of-magnesium-is-a-major-concern-in-the-market","status":"publish","type":"post","link":"https:\/\/makelaalu.fi\/en\/news\/the-limited-availability-of-magnesium-is-a-major-concern-in-the-market\/","title":{"rendered":"The limited availability of magnesium is a major concern in the market"},"content":{"rendered":"\n

Over the past year, the aluminium industry has faced various challenges due to the limited availability of raw materials. In aluminium production, there has been a great increase in the use of magnesium as an alloying element. Magnesium is a critical metal, and 90 percent of the world’s magnesium production is controlled by China.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cAlready in the spring, there were some indications that it could become more difficult to obtain magnesium, as China was planning to close its magnesium plants and reduce its magnesium production by half. So far the industry has managed by using magnesium stocked in Europe, but now the stocks have been exhausted and the supply of magnesium is almost entirely dependent on China,\u201d says M\u00e4kel\u00e4 Alu\u2019s Purchasing Director Ari Kyt\u00f6l\u00e4<\/strong>.\u00a0<\/span>\u00a0<\/span><\/p>\n

The proportion of magnesium in aluminium profiles is 0.5\u20131%.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

M\u00e4kel\u00e4 Alu counts on its raw material suppliers\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n

M\u00e4kel\u00e4 Alu has been in regular contact with its raw material suppliers and is constantly monitoring the market situation.\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cOur suppliers have confirmed the availability of magnesium for the first quarter of 2022. They are currently negotiating second-quarter deliveries. We will inform our customers as soon as we know more,\u201d says Kyt\u00f6l\u00e4.\u00a0<\/span>\u00a0<\/span><\/p>\n

Kyt\u00f6l\u00e4 stresses that while the situation is still uncertain, it does not mean that there will be no magnesium available at all. At some point, however, its availability may be more limited than before.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cI have strong confidence in our partners and their market position, despite increased competition. Our three Nordic raw material suppliers are the best in the industry. We know that they successfully manage their supplier relationships and contracts.\u201d\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

Magnesium is also used in M\u00e4kel\u00e4 Alu’s foundry, where scrap metal is melted into recyclable billets. The supply of magnesium at the foundry has been secured until mid-2023.\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

M\u00e4kel\u00e4 Alu’s annual agreements ensure the availability of aluminium\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n

In addition to strong partnerships, M\u00e4kel\u00e4 Alu ensures the availability of its raw materials through annual purchase agreements.\u00a0<\/span>\u00a0<\/span><\/p>\n

There are basically two ways to purchase raw materials: through annual purchase agreements or through spot trading.\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cOur raw material procurement is based on annual agreements. In this way, we have been able to secure the delivery of our raw materials, and we have always received the materials as agreed. We can always count on our partners,\u201d says Kyt\u00f6l\u00e4.\u00a0<\/span>\u00a0<\/span><\/p>\n

Annual agreements have recently proven their true value as the spot market has been cleared as a result of increased use of aluminium. Those who have relied on the spot market are now in a difficult situation.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

The paint market has stabilised\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n

During this year, M\u00e4kel\u00e4 Alu, like other companies, has had to tackle various challenges due to the limited availability of paint.\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThe situation with paint is now more stable, and we have no longer experienced any significant problems with availability. We have experienced some delays in the delivery of certain individual colours, but these types of delays are perfectly normal. Overall, the situation is relatively good,\u201d says Kyt\u00f6l\u00e4.\u00a0<\/span>\u00a0<\/span><\/p>\n

In this case, too, M\u00e4kel\u00e4 Alu has benefited from reliable long-term partnerships where challenges can be solved together.\u00a0<\/span>\u00a0<\/span><\/p>\n

M\u00e4kel\u00e4 Alu will continue to monitor this situation as well.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Over the past year, the aluminium industry has faced various challenges due to the limited availability of raw materials. In aluminium production, there has been a great increase in the use of magnesium as an alloying element. Magnesium is a critical metal, and 90 percent of the world's magnesium production is controlled by China.\u00a0\u00a0 \u201cAlready in the spring, there were some indications that it could become more difficult to obtain magnesium, as China was planning to close its magnesium plants and reduce its magnesium production by half. So far the industry has managed by using magnesium stocked in Europe, but now the stocks have been exhausted and the supply of magnesium is almost entirely dependent on China,\u201d says M\u00e4kel\u00e4 Alu\u2019s Purchasing Director Ari Kyt\u00f6l\u00e4.\u00a0\u00a0 The proportion of magnesium in aluminium profiles is 0.5\u20131%.\u00a0\u00a0 \u00a0 M\u00e4kel\u00e4 Alu counts on its raw material suppliers\u00a0\u00a0 M\u00e4kel\u00e4 Alu has been in regular contact with its raw material suppliers and is constantly monitoring the market situation.\u202f\u00a0\u00a0 \u201cOur suppliers have confirmed the availability of magnesium for the first quarter of 2022. They are currently negotiating second-quarter deliveries. We will inform our customers as soon as we know more,\u201d says Kyt\u00f6l\u00e4.\u00a0\u00a0 Kyt\u00f6l\u00e4 stresses that while the situation is still uncertain, it does not mean that there will be no magnesium available at all. At some point, however, its availability may be more limited than before.\u00a0\u00a0 \u201cI have strong confidence in our partners and their market position, despite increased competition. Our three Nordic raw material suppliers are the best in the industry. We know that they successfully manage their supplier relationships and contracts.\u201d\u202f\u00a0\u00a0 Magnesium is also used in M\u00e4kel\u00e4 Alu's foundry, where scrap metal is melted into recyclable billets. The supply of magnesium at the foundry has been secured until mid-2023.\u202f\u00a0\u00a0 \u00a0 M\u00e4kel\u00e4 Alu's annual agreements ensure the availability of aluminium\u00a0\u00a0 In addition to strong partnerships, M\u00e4kel\u00e4 Alu ensures the availability of its raw materials through annual purchase agreements.\u00a0\u00a0 There are basically two ways to purchase raw materials: through annual purchase agreements or through spot trading.\u202f\u00a0\u00a0 \u201cOur raw material procurement is based on annual agreements. In this way, we have been able to secure the delivery of our raw materials, and we have always received the materials as agreed. We can always count on our partners,\u201d says Kyt\u00f6l\u00e4.\u00a0\u00a0 Annual agreements have recently proven their true value as the spot market has been cleared as a result of increased use of aluminium. Those who have relied on the spot market are now in a difficult situation.\u00a0\u00a0 \u00a0 The paint market has stabilised\u00a0\u00a0 During this year, M\u00e4kel\u00e4 Alu, like other companies, has had to tackle various challenges due to the limited availability of paint.\u202f\u00a0\u00a0 \u201cThe situation with paint is now more stable, and we have no longer experienced any significant problems with availability. We have experienced some delays in the delivery of certain individual colours, but these types of delays are perfectly normal. Overall, the situation is relatively good,\u201d says Kyt\u00f6l\u00e4.\u00a0\u00a0 In this case, too, M\u00e4kel\u00e4 Alu has benefited from reliable long-term partnerships where challenges can be solved together.\u00a0\u00a0 M\u00e4kel\u00e4 Alu will continue to monitor this situation as well.\u00a0\u00a0","protected":false},"author":2,"featured_media":5809,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42],"tags":[140],"class_list":["post-5870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-magnesium"],"acf":[],"yoast_head":"\nThe limited availability of magnesium is a major concern in the market - Mäkelä Alu Oy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.makelaalu.fi\/en\/news\/the-limited-availability-of-magnesium-is-a-major-concern-in-the-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The limited availability of magnesium is a major concern in the market - 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