MERCOSUR: Magnesite Market 2024

Magnesite Market Size in MERCOSUR

For the third year in a row, the MERCOSUR magnesite market recorded growth in sales value, which increased by 2.7% to $X in 2021. The total consumption indicated a noticeable expansion from 2012 to 2021: its value increased at an average annual rate of +3.4% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +87.9% against 2013 indices. Over the period under review, the market hit record highs in 2021 and is expected to retain growth in the near future.

Magnesite Production in MERCOSUR

In value terms, magnesite production fell to $X in 2021 estimated in export price. The total production indicated a notable increase from 2012 to 2021: its value increased at an average annual rate of +4.5% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +93.3% against 2013 indices. The most prominent rate of growth was recorded in 2015 when the production volume increased by 41% against the previous year. The level of production peaked at $X in 2020, and then shrank slightly in the following year.

Magnesite Exports

Exports in MERCOSUR

In 2021, overseas shipments of magnesite decreased by -36.2% to X tons, falling for the second consecutive year after two years of growth. In general, exports continue to indicate a drastic downturn. The most prominent rate of growth was recorded in 2018 with an increase of 255% against the previous year. The volume of export peaked at X tons in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

In value terms, magnesite exports reduced to $X in 2021. Overall, exports showed a abrupt descent. The pace of growth was the most pronounced in 2018 with an increase of 142% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2012; however, from 2013 to 2021, the exports failed to regain momentum.

Exports by Country

Brazil represented the major exporting country with an export of around X tons, which resulted at 69% of total exports. It was distantly followed by Peru (X tons) and Colombia (X tons), together comprising a 31% share of total exports.

Brazil was also the fastest-growing in terms of the magnesite exports, with a CAGR of +23.6% from 2012 to 2021. Peru experienced a relatively flat trend pattern. Colombia (-30.0%) illustrated a downward trend over the same period. From 2012 to 2021, the share of Brazil and Peru increased by +66 and +12 percentage points, respectively.

In value terms, Brazil ($X) remains the largest magnesite supplier in MERCOSUR, comprising 76% of total exports. The second position in the ranking was taken by Peru ($X), with a 12% share of total exports.

In Brazil, magnesite exports expanded at an average annual rate of +30.5% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Peru (+1.5% per year) and Colombia (-32.2% per year).

Export Prices by Country

In 2021, the export price in MERCOSUR amounted to $X per ton, jumping by 42% against the previous year. Export price indicated a modest increase from 2012 to 2021: its price increased at an average annual rate of +1.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, magnesite export price increased by +33.4% against 2017 indices. The pace of growth was the most pronounced in 2017 when the export price increased by 47%. Over the period under review, the export prices attained the peak figure in 2021 and is likely to see steady growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Colombia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+5.6%), while the other leaders experienced mixed trends in the export price figures.

Magnesite Imports

Imports in MERCOSUR

In 2021, after four years of growth, there was significant decline in purchases abroad of magnesite, when their volume decreased by -41.6% to X tons. In general, imports saw a noticeable slump. The most prominent rate of growth was recorded in 2020 with an increase of 357%. As a result, imports reached the peak of X tons, and then declined rapidly in the following year.

In value terms, magnesite imports dropped markedly to $X in 2021. Over the period under review, imports continue to indicate a pronounced downturn. The most prominent rate of growth was recorded in 2020 with an increase of 235%. As a result, imports reached the peak of $X, and then reduced sharply in the following year.

Imports by Country

Ecuador was the largest importing country with an import of about X tons, which recorded 84% of total imports. It was distantly followed by Chile (X tons), creating an 11% share of total imports. Argentina (X tons) took a minor share of total imports.

From 2012 to 2021, average annual rates of growth with regard to magnesite imports into Ecuador stood at -2.8%. At the same time, Chile (+3.9%) and Argentina (+2.4%) displayed positive paces of growth. Moreover, Chile emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +3.9% from 2012-2021. While the share of Chile (+5.2 p.p.), Ecuador (+2.6 p.p.) and Argentina (+1.6 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Ecuador ($X) constitutes the largest market for imported magnesite in MERCOSUR, comprising 63% of total imports. The second position in the ranking was taken by Chile ($X), with a 24% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of value in Ecuador was relatively modest. In the other countries, the average annual rates were as follows: Chile (+7.7% per year) and Argentina (-6.5% per year).

Import Prices by Country

In 2021, the import price in MERCOSUR amounted to $X per ton, with an increase of 8.7% against the previous year. In general, the import price posted a slight increase. The growth pace was the most rapid in 2015 when the import price increased by 48%. Over the period under review, import prices reached the peak figure at $X per ton in 2016; however, from 2017 to 2021, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Chile ($X per ton), while Ecuador ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Ecuador (+3.9%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform