Urandaline Investments

Magnesium

China’s Magnesium Industry explains how China’s magnesium industry is moving to another stage in its development where the importance of production costs will be replaced by an increased concern with magnesium applications, especially die-casting. The report observes that until now, China’s magnesium producers have been primarily concerned with the production of basic magnesium ingot and granules. Domestic consumption has been low and confined to simple end-uses such as aluminium alloying and steel desulphurization. The industry’s focus has been on production, and during this time Chinese engineers developed very innovative improvements to their production processes. With very little reference to product applications or customer needs, this phase is best described as production-focused.

Transition from a production focus has been helped with a massive amount of public money. While government support was important during the production focus phase, it has been essential for the industry’s transition to the next phase – the component focus. Beijing has allocated ¥41 million to programs designed to foster a wider understanding of the production and application of magnesium alloys and die-casting. The government’s money has been supplemented with ¥600 million from local governments, 21 provinces, four research institutes, seven universities and 20 companies that participate in these programs.

The combined support of government, industry and academia has seen China’s magnesium components industry evolve around three regions - Qingdao, Chongqing and Shanghai. The production of small die-cast components for electronic equipment such as cell phones and laptop computers has consolidated around Qindgao. The existence of a strong industrial base and technical support has seen the emergence of Chongqing as a centre for magnesium applications in the motor cycle industry and Shanghai as the centre for automotive die-casting.

China’s Magnesium Industry identifies three challenges confronting the industry over the next five years. Firstly, stricter enforcement of occupational health, safety and environment standards challenge the industry which is already a notorious polluter. A second challenge lies in the inappropriate and outdated business structures which are a constraint to plant expansion. Finally, the prospect of a currency revaluation is the third challenge the industry faces.

China’s Magnesium Industry provides a comprehensive technical analysis of the Pidgeon process which is used as a basis for estimating the cost of producing magnesium at China’s 146 magnesium plants.

China’s Magnesium Industry includes a cost assessment of producing magnesium at a range of plants around China, including 19 plants in Shanxi that operate with waste gas from nearby coke ovens. These very low cost smelters are now China’s most efficient and lowest cost magnesium producers.

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NOTE: Our photographic library holds a sample of images found in China's Magnesium Industry report.

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