Mike O’Driscoll, Alison Russell
SUPPLY SECURITY
“Recession? What recession?”: for those in the refractory grade fused magnesia (FM) business the dark days of slumped markets and easy availability in supply must now seem a long time ago.
FM is in short supply and prices are rising fast. Indeed, some consumers are not sure where they might get their requirements for the rest of the year and at what inflated price. It’s obviously good news that markets, particularly steel, have recovered, but now it’s a headache for traders and suppliers to meet customers’ demands one industry trader said: “Q4 will be a disaster”.
The accompanying map shows the leading world sources of FM. Like many market sectors, the key here is China. Chinese supply, demand, and trade in magnesia in...