Abstract
The new 2005 Roskill report on the magnesium compounds and chemicals industry will be published
in March 2005. It will provide up-to-date market analysis of resources, production, consumption,
trade and prices. More than 100 detailed tables and figures give you access to all the data you need
at a glance. The world refractory magnesia market continues to be in a state of over supply but has
been moving back closer to balance for a number of years as companies in Italy, the UK and the USA
exit from the market. The majority of global magnesia is located in China, North Korea and Russia,
accounting for around 75% of global dead burned magnesia capacity based on magnesite. In developed
economies, such as Japan, the USA and Western Europe, total capacity for production of magnesia is
just 0.7Mtpy out of a world total of around 10Mtpy. World consumption of magnesium compounds is
dominated by the refractories industry, which accounts for around 70-80% of global usage. Magnesite
and magnesia producers have experienced very little growth in this market for many years as advances
in refractory technology continue to design out their products. However, over the next few years
worldwide consumption of dead burned and fused magnesia is expected to increase slightly in response
to strong growth in the Chinese steel and non-ferrous metals industries. European and North American
demand for caustic calcined magnesia is rising, especially for use in agriculture. However, demand
for caustic calcined magnesia, fused magnesia and magnesium chemicals (magnesium hydroxide,
magnesium chloride and magnesium sulphate) is small compared to that of dead burned magnesia in
refractories. Roskill forecasts that overall consumption of dead burned magnesia, caustic calcined
magnesia and fused magnesia will rise to around 8Mtpy in 2008, compared to 7.6Mt in 2005. While a
significant increase, this rise would only take consumption back to 2001 levels and will be highly
dependent on a sustained price rise in Chinese consumption of dead burned magnesia in refractories.
The price of dead burned magnesia rose by over 25% in 2004, which was the first increase since the
late 1990s. However, the increase in published Chinese magnesia prices was caused by sharp rises in
costs of production such as power, transport and raw material costs, not by producers taking
advantage of supply shortages. The long term price of dead burned magnesia and fused magnesia will
largely be determined by rising Chinese consumption in refractories and the amount of material
exported from China. Chinese magnesia producers have formed four export associations since 2000 in
an attempt to regulate exports and maintain prices. The China Magnesite Self-Disciplined Association
(CSMA) was formed in 2004 and its effectiveness in helping to regulate exports will be of great
importance in determining future dead burned and fused magnesia prices. In its latest report on the
magnesium compounds and chemicals industry, Roskill examines the implications of each of these
market developments and provides a reliable forecast for the future.
The key trends, issues and developments in the market are now analysed in this major new report
from Roskill. It provides a clear insight into all areas of the industry and an authoritative
analysis of the prospects for the future.
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