Japan Magnesium Demand to Renew Record in 2007

Japanese magnesium ingot demand will increase to record 48,150 tonnes in 2007, according to outlook by Japan Magnesium Association. The association expects the demand will increase by 2.4% from record in 2006. The demand will increases for 2 years in a row due to firm activity for automobile and other user industries.

The association expects the demand of structural materials increases by 2.6% to 12,700 tonnes in 2007 from 2006. The growing die-casting demand reaches the first 10,000 tonnes. The additive demand will increase by 4.2% to 32,100 tonnes due to firm activity for aluminium industry.

The association said the magnesium ingot demand increased by 2.3% to 47,019 tonnes in 2006 from 2005, which increased for the first time in 2 years. The higher growth for export demand lifted the demand figure despite of the less than 1% increase for domestic market.

The demand of structural materials was flat in 2006 from 2005. The die-casting demand was firm while the injection molding demand was slow due to offshore shift from domestic production. The rolled products demand showed gradual increase. The additive demand increased due to recovery of aluminium industry. Nodular cast iron demand recovered the 2004 level after the wide drop in 2005. The demand for steel desulfurization decreased after the surge in 2005.

See attached table.