Magnesium China Market Report 2019

In 2019, the overall operation of the magnesium industry is stable, and the output and export volume continue to increase. However, there are shortcomings in the environmental protection level of smelting and the application of deep-processed products. The task of industrial transformation and upgrading is still arduous.

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1. The output of primary magnesium increased year-on-year, and the price dropped slightly. According to the statistics of the Nonferrous Metals Association, in 2019, the output of raw magnesium was 969,000 tons, a year-on-year increase of 12.2%. Affected by the increase in supply, the average domestic price of domestic magnesium in 2019 was 15,949 yuan / ton, a year-on-year decrease of 3.3%. According to industry association research, affected by falling prices and rising costs, the actual profitability of magnesium smelting companies declined slightly year-on-year.
2. China's domestic consumption continues to grow, and exports have stopped falling and rebounded. In 2019, China's magnesium consumption was 485,000 tons, a year-on-year increase of 8.6% and a year-on-year increase of 1.6 percentage points. Among them, the consumption in the metallurgical field was 313,000 tons, a year-on-year increase of 6.2%; the consumption in the processing field was 160,000 tons, a year-on-year increase of 14.2%. Foreign magnesium demand has picked up, and a total of 452,000 tons of various magnesium products have been exported throughout the year, an increase of 10.2% year-on-year, and the export volume accounts for 46.6% of magnesium production.
3. The adjustment of industrial structure has accelerated, and high-end applications have continued to make breakthroughs. In 2019, Nanjing Yunhai Metal acquired Chongqing Boao Magnesium Aluminum, and progress was made in upstream and downstream integration. The forging of magnesium alloy wheels made breakthroughs in the supply to automobile OEMs. The new high-performance lightweight magnesium rare earth alloy material has been successfully applied to key complex load-bearing components of helicopters, achieving batch and stable manufacturing, filling a gap in China's new generation of high-strength heat-resistant magnesium alloy materials for helicopters.
In 2020, the transformation and upgrading of the magnesium industry in terms of energy saving, emission reduction, and expansion of applications will remain arduous. The entire industry will continue to deepen supply-side structural reforms in accordance with the requirements of the Central Economic Work Conference, carry out standardized management of the magnesium industry, and improve the magnesium smelting process. Promote the application of green smelting technology, improve the level of mechanization, automation and intelligence, accelerate the application of key products such as magnesium wheels, and promote high-quality development of the industry.