Executive Interviews

Asian Metal: Hello Mr. Giuseppe Filomena, welcome to Asian Metal's interview. To start, could you please introduce your company’s structure and core business areas?

Giuseppe Filomena: My name is Giuseppe Filomena, and I work at CellMark alongside Mr. Luc Veerecken. I’m primarily responsible for the metals division, with our focus on bulk metals serving the non-ferrous and ferrous industries. CellMark Metals’ core business includes magnesium, silicon, aluminum, manganese, chromium, nickel, and zinc. We offer clients a comprehensive suite of services, including innovative solutions for physical market access, logistics and supply chain support, financing, and hedging. CellMark is a member of several major metal associations, including BIR, IMA, ICDA, MMTA, and ReMA. I currently serve as the Chairman of the European Committee for the International Magnesium Association (IMA).

Asian Metal: As we entered the first quarter of 2025, how have magnesium-related product prices performed?

Giuseppe Filomena: From January to mid-February 2025, magnesium ingot prices remained stable at around USD2,200–2,250/t CIF Rotterdam. Prices of related magnesium products remained similarly steady. However, market demand during this period was generally weak, with buyers adopting a cautious, wait-and-see approach. Under the pressure of continued losses in carbon-based raw materials and the inversion of magnesium pricing, some producers considered scaling back output. From mid-February to early March, as coal prices continued to decline and pessimism spread across the market, magnesium ingot prices dropped sharply by nearly USD 130/ton, falling to USD2,100–2,150/t. In response, some factories began reducing production. As inventories decreased and confidence improved, magnesium prices rebounded by about USD100/t.

Asian Metal: What is the current state of the downstream industries in Europe—specifically steel mills, the automotive sector, and aluminum plants? How is their demand for magnesium products?

Giuseppe Filomena: Europe’s metals industry is under immense pressure. Geopolitical instability, aggressive decarbonization policies, high energy costs, and elevated interest rates have all contributed to significant uncertainty. The automotive industry, a key pillar of the global economy, is particularly affected. Automakers such as Volkswagen, BMW, Mercedes-Benz, and Stanlandis have reduced production and even announced potential plant closures without government support. Consequently, overall demand for metals has dropped sharply, and magnesium has been hit particularly hard. According to Chinese customs data, China exported 95,328 tons of magnesium alloys in 2024, down 8.34% year-on-year from 104,013 tons. Exports to the Netherlands, a major European entry point, declined by 12.26% to 18,066 tons from 20,591 tons in the previous year. Given magnesium’s price volatility, the industry has increasingly turned to magnesium scrap to reduce reliance on primary material. While magnesium offers a clear advantage in lightweight applications, its production has a higher carbon footprint than aluminum, contributing to a trend of substitution toward aluminum in the European market.

Asian Metal: Do you expect European demand to recover in the first half of 2025? Will you prioritize long-term contracts or focus more on the spot market given the risk factors?

Giuseppe Filomena: Economic recovery in Europe remains challenging under the weight of persistent inflation and high interest rates. Coupled with tariffs, trade barriers, and structural shifts in demand, market conditions remain difficult. Over the past two to three years, the automotive industry has increasingly transitioned from magnesium to aluminum, and any potential reversal will require a lengthy and cautious evaluation. Additionally, Europe’s stringent low-carbon policies continue to pose hurdles for magnesium applications. All things considered, I remain cautiously pessimistic about magnesium demand in Europe for the first half of 2025. At CellMark, our strategy is to continue securing spot market orders while maintaining a selective number of long-term contracts. However, we avoid participating in blind price wars. Our priority is to deliver real value to our customers and continue serving those who recognize and appreciate our quality and expertise.

Asian Metal: You’ve emphasized carbon emissions multiple times. What are the specific regulatory requirements in Europe? Will this impact magnesium’s future in the region?

Giuseppe Filomena: The European Union is firmly committed to achieving carbon neutrality by 2050. One of the key regulatory instruments is the Carbon Border Adjustment Mechanism (CBAM), which came into effect in October 2023 and will be fully enforced by January 2026. CBAM creates a clear path for low- and zero-carbon products by requiring carbon footprint disclosures. Since January 2025, producers of metals covered by CBAM must submit verified carbon footprint statements. While magnesium and its alloys are currently not directly included, magnesium is a key alloying element in many aluminum applications. Therefore, to maintain its role in die-casting and other sectors, magnesium’s carbon footprint will need to be significantly reduced.

Asian Metal: Given magnesium’s current price advantage, its excellent lightweight properties, and the industry's push for low-carbon solutions, do you see any potential growth areas for magnesium in Europe in 2025?

Giuseppe Filomena: While price is important in drawing attention to a material, stability is even more critical. Historically, magnesium prices have been highly volatile, which undermines long-term confidence. To enable sustainable demand growth, the industry must first focus on carbon footprint measurement. At present, very few producers have third-party-certified carbon declarations. To unlock new growth potential, all stakeholders across the value chain need to identify and address users’ environmental and technical expectations.

Asian Metal: Over 80% of global magnesium supply comes from China. Are there any new raw magnesium production projects underway in Europe to balance this?

Giuseppe Filomena: Yes. The Critical Raw Materials Act (CRM Act) aims to increase the EU's self-sufficiency in sourcing key materials, including magnesium. This involves several initiatives: entering into trade agreements with resource-rich countries, boosting recycling capacity, and enhancing domestic production. Magnesium has been identified as a strategic material, so it’s receiving considerable attention. Currently, at least four primary magnesium production projects are under evaluation in Europe and may enter practical development in the near future.

Asian Metal: Thank you for sharing your insights in this exclusive interview with Asian Metal. We wish you continued success in your work!

Giuseppe Filomena: Thank you, Asian Metal, for the opportunity. We look forward to seeing Asian Metal continue to grow and thrive!