South Korea: Magnesium / lithium deficiency occurs
-Korea, as usual ‘China-dependent constitution’-
Korea:
South Korea faces essential raw material shortages.
magnesium:
Magnesium is an indispensable material for steel sheets for automobiles, building materials, and electronic products.
At the same time as increasing the strength of the metal, it also has the role of reducing the weight.
China monopolizes 90% of the world:
China accounts for about 90% of the world’s supply.
South Korea imports everything from China.
Chinese government:
From September this year
China is short of electricity
Regulated magnesium production.
Therefore, the price is skyrocketing.
Magnesium price from China:
Magnesium from China
From 1kg / 3050 won (290 yen) earlier this year
Recently, it has risen to 1 kg and 12,000 won (1150 yen).
China is worried that it will restrict exports of magnesium because of domestic shortages.
Korea Trade Association:
Of the 12,586 imported items
Items with a specific country ratio of 80% or more
It is said that there are 3941 items (31.3%).
magnesium,
rare earth,
lithium,
Urea is not the only shortage in South Korea.
In South Korea, the supply and demand of essential raw materials such as magnesium, rare earths, and lithium are also in an emergency.
Korea’s dependence on China:
South Korea faces essential raw material shortages because it is too dependent on China for imports.
permanent magnet
86.2% of permanent magnets made from rare earths,
Lithium hydroxide
It relies on China for 83.5% of lithium hydroxide.
Analysis of Korea Trade Association:
We analyzed 12,586 domestically imported products.
The number of items in South Korea with a ratio of 80% or more in China has reached 1850.
World China Ratio:
Items of 80% or more are as follows.
United States (503 items),
Japan (438 items),
Germany (121 items),
Italy (108 items) also exceeded 100 items.
Items with an import ratio of 80% or more in South Korea:
Of the 1850 items, the most important raw materials are as follows.
Lithium hydroxide:
Lithium hydroxide is also produced in China at a ratio of nearly 85%.
Second place Chile production ratio is only 12.5%.
If exports are suddenly stopped, like urea,
The impact on battery production is inevitable.
terbium:
Neodymium Oxide:
Permanent magnets made from rare earths also account for more than 86% in China.
Permanent magnets are a core material for EV motors, TVs and missiles.
Tungsten trioxide:
Tungsten oxide, which is mainly used in medical devices, also depends on China at 94.7%.
US production ratio:
The ratio of propane and butane produced in the United States also exceeds 90%.
Japanese production ratio:
Export Control 3 Major Items
Photoresist and polyimide fluoride
More than 80% of all imports depend on Japan.
Korea Trade Association
Trade Support Center
Choi Hyun Jung
In a situation where protectionist trade is being strengthened
With the current supply and demand system for raw materials,
If South Korea was only thinking about profitability
South Korea is likely to face an unexpected crisis.
LG Economic Research Institute
Bae Min-jun Responsible Researcher
China
For some core materials
The more China depends on Japan
Japan’s competitiveness is by far the strongest.
Japan has a strong ability to respond to export restrictions of other countries.
Chosun Online | Chosun Ilbo
http://www.chosunonline.com/m/svc/article.html?contid=2021110680018