China Weaponizing Its Resources
Raw material shortages triggered in China are seriously affecting global industries. Experts point out that China is weaponizing its resources under U.S. pressure, although it is mentioning carbon neutrality and electric power shortage as reasons. More and more countries are having talks with China to deal with the shortages.
Germany and the Czech Republic are negotiating with China regarding magnesium. 10 years ago, the price of magnesium per ton was 14,000 yuan to 20,000 yuan. In August and September this year, the average price was 42,000 yuan and the maximum price was 70,000 yuan.
China accounts for 87 percent of the global total magnesium production. In addition, it is the biggest aluminum supplier in the world. These days, aluminum and magnesium production in China is not smooth at all due to the power shortage that resulted from China’s Australian coal import ban. The international price of aluminum per ton reached US$3,000 last month, the highest since 2008.
In China, the price of lithium carbonate for use in batteries has more than quadrupled in one year and the current price per ton is 192,500 yuan. China is home to a number of facilities where carbonic acid is mixed with lithium imported from Chile and other countries. In other words, the global electric vehicle market cannot but be seriously affected in the event of any decline in supply or price rise on the part of those facilities.
When it comes to urea solutions, close to 70 percent of those used in South Korea are made in China, which stopped the export of urea on Oct. 15. In South Korea, the urea solution price per 10 liters has soared from 10,000 won to 100,000 won since then, adding to the concerns of those who have diesel vehicles.
“China is retaliating against the United States with their trade disputes still ongoing,” said an industry expert, adding, “The problem is that the disputes are likely to continue for long and the power shortage in China is likely to continue until early next year.”