MIIT Released Magnesium Industry Status In 2018

MIIT Released Magnesium Industry Status In 2018

On March, 7, Raw Material Industry Division of MIIT released magnesium industry status in 2018. In 2018, magnesium industry maintained a smooth operation; domestic consumption grew and magnesium price went up continuously. Smelting process was given big pressure in environmental protection; application of deep processing products was to be accelerated. Magnesium industry still faced tough task of transformation and upgrading.

Firstly, raw magnesium price presented a YOY decrease and price rose after shock. According to statistic data from nonferrous association, in 2018, due to production control (to protect environment), our raw magnesium yield was 860000 tons, presenting a YOY decrease of 5.4%. The shrink of supply contributed to the rise of magnesium price. Average spot price of magnesium was RMB 16500/ton, a YOY increase of 10.5%. According to a survey by nonferrous association, actual profit making level in magnesium smelting increased on a YOY basis and industrial benefit improved continuously.

Secondly, domestic consumption went up continuously and export volume fell. In 2018, domestic magnesium consumption was 450000 tons, presenting a YOY increase of 7%, growth rate increasing by 2 percent points on a YOY basis. Due to reduction of 3C product consumption, consumption of magnesium processing materials decreased in growth rate. Oversea demands for magnesium fell. Accumulative export of various magnesium products was 410000 tons, shrinking by 11% on a YOY basis, accounting for 48% of total magnesium yield.

Thirdly, industrial restructuring contributed to big progress in high-end application. In 2018, Baowu Steel became a shareholder of RSM. They work together to extend the application of magnesium and demonstrate a consolidated cooperation between state-owned enterprise and private enterprise. Henan Hebi established magnesium trading center that promotes circulation of magnesium products and facilitates sound operation of domestic magnesium market by innovative trading model. High-end magnesium material made big progress in its application. Magnesium alloy auto hub achieved industrialization and products are exported to foreign countries. Magnesium alloy for new-type repair-oriented controllable degrading bone achieved scale preparation. Products are provided for domestic medical equipment enterprises.

Fourthly, big pressure in environmental protection and tough task in green development. In recent years, magnesium smelting process has been making progress while we are still at relatively low level of mechanization and automation. Working conditions are to be improved and energy conservation and emission reduction and waste recycling are to be advanced. In 2018, with the deepening of pollution governance, some magnesium smelting enterprises were closed due to environment-unfriendliness. Employment difficulty was getting prominent and green development is a harsh requirement for the whole industry.

In 2019, lightweight transportation development both home and abroad will provide huge potential for magnesium application. Meanwhile, it also raised higher requirement for future green development of the whole industry chain. Improving smelting technologies and extending magnesium application are important preparation for high-quality development of magnesium industry. Raw Material Division of MIIT will keep facilitating local government and enterprises to construct platform of magnesium smelting technology R&D, supporting magnesium industry in technical restructuring for green manufacturing, encouraging application of key products like magnesium hub, finally to accelerate the large-scale application in magnesium industry.