Japan Magnesium Demand to Drop to 7-Year Low in 2009

Japanese magnesium demand will decrease by around 30% to 30,000 tonnes including export in 2009 from 2008, which is first less than 40,000 tonnes volume in 7 years, announced by Japan Magnesium Association on Friday. The users try to reduce the inventory and many users decided not to purchase the metal in April-June as January-March. The demand is expected to decrease significantly when the demand keeps low level in automobile and other manufacturing industries.

The demand reached 30,000 tonnes in 1999 and kept more than 40,000 tonnes from 2003 to 2008. However, the worldwide slower economy reduced the activity of automobile and manufacturers reducing the magnesium demand.

The demand decreased by 9.3% to 43,013 tonnes in 2008 from 2007 due to surging price and slower economy. The structural application decreased by 22.1% to 9,268 tonnes due to major drop for die-casting demand. The additives application decreased by 4.1% to 31,059 tonnes.