IMA encourages US to review magnesium dumping more often amid supply squeeze

The International Magnesium Association encouraged the Commerce Department to reexamine the dumping of magnesium into the US more frequently to determine if such trading conditions still exist following a recent decision to extend an antidumping order on magnesium from China amid supply concerns.

"The magnesium market in the United States is suffering from a supply shortage, further restricted by the current regulations," IMA President Rick McQueary said in a statement sent to S&P Global Commodity Insights. "As a result, magnesium prices in the United States are trending upward and beyond historical levels."

The Platts US weekly assessment for minimum-99.8% magnesium settled at $8.00-$9.50/lb DDP June 10-16, with a midpoint at $8.75/lb. The midpoint was up from $6.58/lb at the beginning of the year and $2.33/lb at the beginning of 2021.

Despite tight supply and higher prices for magnesium in the US, Commerce recently ruled that the revocation of an antidumping duty order on pure magnesium from China would be likely to lead to the continuation or recurrence of dumping at weighted-average margins of up to 108.26%, according to a June 13 notice in the Federal Register.

The antidumping ruling was made as part of an expedited fifth sunset review of the order.

McQueary said the IMA "supports the free and fair trade of magnesium, no matter what country is involved" and "continues to follow [Commerce's] reviews on imports of magnesium to the United States."

The US imported 6,310 mt of magnesium in 2021, according to Commerce data. Imports have fallen every year since reaching 16,454 mt in 2017. This data covers imports of pure unwrought magnesium, under HS code 810411, containing 99.8% or more magnesium by weight.

US magnesium imports from China totaled 93 mt in 2010. Shipments then fell each year and did not exceed 2 mt from 2013 to 2017. Magnesium imports from China spiked to 148.87 mt in 2019 and have since declined to 12.48 mt in 2021.

In a monthly update issued on the IMA's website June 2, McQueary said China was experiencing increased magnesium inventory levels driven by reduced consumption because of coronavirus-related shutdowns. These conditions were paired with slow buying activities, he added.

Europe is also grappling with measures to balance its domestic production of magnesium with imports from China. A European Commission official recently told S&P Global that the governing body was preparing a legislative proposal to increase domestic production of magnesium and other critical raw materials, as indicated in the REPowerEU Action Plan, to reduce dependence on imports.