Magnesium Compounds Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Magnesium Compounds Market Trends and Insights

Booming Refractory Demand from Reviving Global Steel Output

In early 2025, crude steel production saw a year-on-year increase. However, in 2024, prices for refractory-grade magnesia dipped, a decline attributed to persistently high inventories in Liaoning. While Indian capacity additions received approval in 2024, they are expected to start influencing refractory orders after the typical 18-to-24-month delay. Electric-arc furnaces, accounting for a significant portion of global steel output, are known to shorten lining life, consequently increasing the frequency of brick replacements. RHI Magnesita reported an uptick in Asian refractory consumption, contrasting with stagnant volumes in Europe. The magnesium compounds market stands to gain, as magnesia bricks are crucial for withstanding the heightened thermal shocks associated with EAF operations.

Stringent Wastewater and Flue-Gas Norms Spurring Mg-Based Environmental Reagents

In April 2024, the U.S. EPA mandated a sulfur-dioxide capture rule for primary magnesium refiners, compelling plants to adopt magnesium-oxide scrubbers that also function as product-recovery systems^{[1]U.S. Environmental Protection Agency, “National Emission Standards for Hazardous Air Pollutants,” EPA.GOV}. In 2025, Europe imposed stricter phosphorus discharge limits on municipal wastewater, favoring magnesium hydroxide over lime due to its ability to reduce sludge volumes. In 2025, Israel Chemicals announced increased sales of magnesium hydroxide slurry to EU utilities, attributing the success to their ISO 14001-certified output. With similar policies emerging in Asia, there's a growing expectation that environmental-grade magnesium compounds will command premium prices and capture additional market volumes.

Soil-Magnesium Depletion Accelerating Fertilizer-Grade Mg Salts Usage

In 2024, USDA field work revealed that maize and soybean yields declined when soil magnesium levels dipped below 50 ppm. The issue worsened with high-potassium fertilizer regimens, leading agronomists to advocate for magnesium sulfate side-dress applications. In 2025, TIMAB Magnesium introduced a coated oxide granule that boosted nutrient-use efficiency in trials with Brazilian soybeans. While fertilizer buyers remain sensitive to prices, the market penetration of magnesium compounds is poised to rise, driven by the increasing prevalence of remote sensing and soil-testing services.

Desalination-Brine Valorization Unlocking Ultra-Low-Cost Mg Feedstocks

In 2024, global desalination plants released brine daily, containing magnesium. Magrathea Metals, leveraging coastal wind power, extracts magnesium hydroxide from Pacific seawater through colocated electrolysis. Verde Magnesium is investing in a Romanian venture, aiming to launch a plant by 2027. This facility is designed to comply with EU Carbon Border regulations, boasting a low carbon footprint. Collectively, these initiatives expand the raw material landscape for the magnesium compounds sector and help stabilize feedstock costs.

Price-Sensitive Substitution by Ca or Al Compounds in Several End-Uses

Calcium carbonate is about half the cost of light-burned magnesia and is the go-to filler when flame retardancy isn't a priority^{[2]U.S. Geological Survey, “Mineral Commodity Summaries 2025,” USGS.GOV}. In 2025, aluminum hydroxide commanded a dominant share of the global flame-retardant market, bolstered by longstanding certifications. While construction budgets in India and Southeast Asia lean towards locally sourced lime for water treatment, opting for it over imported magnesium hydroxide, there are noted performance trade-offs. These economic choices result in a deduction from the baseline CAGR.

Supply-Chain Volatility Driven by China-Centric Production and Energy Costs

In 2024, coal prices at Qinhuangdao fluctuated, impacting production costs, even as Liaoning province accounted for a significant share of Europe's magnesia imports. Following the bankruptcy of US Magnesium, buyers turned to imports, now subject to tariffs until 2026. Late in 2024, freight costs from Dalian to Rotterdam surged, doubling in price, as container availability was compromised by diversions in the Red Sea. Such market volatility undermines buyer confidence, leading to delays in long-term contracts and a consequent growth restraint.

Segment Analysis

By Source: Natural Brine Scale vs. Seawater Disruption

Natural brines held 44.38% of the 2025 volume and remain the low-cost base for commodity magnesia, anchored by Dead Sea operations. Seawater-derived output, while a mid-teen share today, is set for 6.18% annual growth as electrolysis costs fall and ESG audits favor its lower carbon footprint. 

The magnesium compounds market benefits from this dual structure because high-purity products can be sourced from seawater without displacing large-scale brine evaporation assets. Magrathea Metals showed that seawater operating costs already undercut Great Salt Lake brine in pilot runs. If coastal projects replicate at scale, commodity suppliers may pivot excess brine capacity toward refractory grades while seawater plants serve electronics and pharma buyers.

Note: Segment shares of all individual segments available upon report purchase

By Product Type: Organics Move Up the Value Chain

Inorganic chemicals commanded 71.46% of revenue in 2025, supported by refractory bricks, environmental reagents, and fertilizers. Organic magnesium compounds expanded 6.24% per year because FDA-cleared drugs rely on magnesium stearate, while nutraceutical brands market chelated forms at premium prices. 

The magnesium compounds market size linked to organic grades is small but profitable. In 2025, pharmaceutical-grade stearate prices remain high, largely due to the entry hurdles posed by GMP certification. TIMAB’s controlled-release oxide blurs the inorganic-organic divide by adding coating technology that raises nutrient-use efficiency.

By End-User Industry: Electronics Outpace Refractories

Refractories took 32.47% of 2025 demand, tied to steel and cement cycles. Electrical and electronics applications now grow at 6.31% a year, fueled by halogen-free fire standards in EV battery packs and the thermal conductivity needs of 5G equipment. 

The magnesium compounds market share for flame-retardant hydroxide will broaden as regulators tighten rules on brominated additives. In 2025, Japanese fabs boosted their purchases of semiconductor-grade MgO, highlighting a shift towards sourcing high-purity supplies.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific supplied 53.28% of the 2025 value and should grow 5.94% to 2031 despite Liaoning’s capacity freeze. India’s new steel projects and Japan’s specialty-grade exports offset slower Chinese construction. 

After the shutdown of the Great Salt Lake, North America secured a significant market share. Despite facing tariffs on imports, buyers are still willing to pay a premium for non-Chinese supplies. This scenario is paving the way for seawater ventures to flourish along the Pacific coast.

Europe's market share largely hinges on Nedmag’s operations in the Netherlands and the upcoming Verde Magnesium plant. Set to launch in the coming years, this plant is poised to reduce Europe's import dependency. Meanwhile, South America and the Middle East, driven by Brazilian fertilizer needs and brine projects in the Gulf Cooperation Council (GCC), together account for a notable portion of the market.