critical there are
two metals very critical and strategic to the N American industrial base as well as the Defense industry. Two metals of which
China holds huge world dominance over in terms of production and/or export of, and those key metals are
Manganese (Electrolytic Manganese Metal; EMM) and Magnesium. Some Interesting Facts For Consideration:
*China now controls 97% of world’s Electrolytic Manganese Market Production & Exports.
*Since 1998 China’s output of Magnesium has been a world leader (630,000 T in 2008) (*T= tonnes)
China now controls 89% of world’s Magnesium Production & Exports. (China was a net importer in 1993)
*China uses an inefficient and outdated Magnesium process not used in the west but due to a cheap labor force they have always been able to operate at marginal costs. China now faces electrical shortages due to rapid expansion of their economy and coal shortages/costs so those cost increases will be passed on to the consumer.
*China imports Manganese from the four corners of the world, processes it into various products and sells it back to the western world after imposing a 20% export tax. (US adds another 14% import tax) Then the buyer pays trans-oceanic shipping and handling costs as well.
*Ever growing internal domestic demands for Magnesium and Manganese from within China itself are and will continue to set limits on exports over years ahead. (With the potential for further increases to Chinese export taxes in future)
*The US Dept of Defense Strategic Metals stockpiles of Manganese are virtually gone. Sold off!
*Manganese is listed as a key “Strategic Metal” for military hardware according to the US DOD.
*The US is 100% dependent on Manganese imports for the steel industry and its many other applications and you do not make steel without Manganese. US Electrolytic Manganese (EMM) Import Statistics are currently @ 35,000 Tonnes per year.
*Total world production of Electrolytic Manganese in 2008 was 1,190,000 T’s, of that China produced 1,138,000 T’s and domestically consumed 833,000 T’s of that total.
*Manganese is 4th largest traded metal commodity worldwide @ approximately 30 B pounds p/y worldwide.
*Electrolytic Manganese production (EMM) is currently at 2.6 B pounds p/y worldwide, up from 660 M pounds in 2002.
*Worldwide Manganese demand is growing @ 8% p/y, with EMM (Electrolytic Manganese) growing @ 26% p/y for the last five consecutive years.
*There are no substitutions for Manganese in its major applications.
*When Magnesium can be used as a replacement material in Aluminum use the weight drops by one third and when replacing steel the weight drops by three quarters.