Japanese Magnesium Demand to Recover by 16% in 2010

Japanese magnesium demand is expected to increase by 16% to 37,750 tonnes including export in CY2010 from CY2009, according to the outlook by Japan Magnesium Association. The demand volume is about 80% compared with the recent peak in CY2007, especially about 60% for structural applications including die casting.

The demand including export decreased by 24.3% to 32,556 tonnes in CY 2009 from CY2008, which hit the record low. The demand decreased by 32.2% to 6,283 tonnes for structural applications, almost a half of the recent peak in CY2006. Among structural applications, the demand for die casting declined by 28.5% to 5,493 tonnes due to automakers’ wide-range output reductions.

The demand decreased by 21.2% to 24,465 tonnes for additives, among which the volume downed by 12.8% to 17,552 tonnes for aluminium alloys. The demand maintained relatively stable for can materials but significantly dropped for secondary aluminium alloys.

In CY2010, the demand is expected to recover mainly for additives. The demand is forecasted to increase by 11.1% to 19,500 tonnes for additives applied to aluminium alloys in CY2010 from CY2009.

The demand for structural applications is also forecasted to rebound by 20.2% to 7,550 tonnes. The demand would increase by 16.5% to 6,400 tonnes for die casting and by 47.2% to 6,000 tonnes for steel desulfurizing along steel makers’ output increase.