Business Visits
Asian Metal visits Second Plant of Jinchuan Hongtai, Jinchuan Magnesium and Jinchuan Hongtai Magnesium Alloy
On the morning of November 27, 2019, Asian Metal Senior Magnesium Analyst and Senior Product Manager Ms. Daphne Zhang visitedSecond Plant of Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd., Fugu Jinchuan Magnesium Co., Ltd. and Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd., and were warmly greeted by the above Fugu-based companies.
On the morning of November 27, Ms. Daphne Zhang first visited Second Plant of Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd., where she met and communicated with the plant's Sales Director Mr. Li Meng. They compared magnesium supply-demand status in 2018 and in 2019, and both held that increasing supply but slowing down demand were the main reasons for decreasing magnesium prices in the fourth quarter of 2019, and producers may get through stagnancy in the magnesium market by controlling costs and strengthening management.
Focusing upon production of magnesium ingot 99.9%min, Second Plant of Fugu Jinchuan Hongtai Magnesium Alloy has an annual production capacity of 20,000t of magnesium ingot and keeps an average monthly output of 1,500t. It maintains stable production and sales, and holds only 300t of stocks now. Current magnesium prices are close to production costs; furthermore, coal prices are high and magnesium producers bear losses in semi-coke production and find themselves difficult to sell the material too. In sum, magnesium producers face a quite difficult situation now and magnesium prices are expected to be relatively stable in the short term, with quite limited room to drop.
The plant has cooperated with Asian Metal for many years. Mr. Li thought highly of objective, fair and timely market information provided by Asian Metal and also gave positive comments on previous magnesium summits held by Asian Metal. He planned to participate in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.
Afterwards, Ms. Daphne Zhang visited Fugu Jinchuan Magnesium Co., Ltd. and exchanged views with the company's General Manager Mr. Wang Guangyao on current supply-demand status and future development trends of the magnesium market. They thought that now magnesium supply is sufficient but demand is weak, so it's hard for magnesium market players to gain confidence in trading and price trends in the time ahead; but since magnesium producers suffer serious losses in their production of side product semi-coke and furthermore, producers have to pump more money into upgrading their environmental equipment, necessary adjustments might be done in magnesium supply in the future if stagnancy in the magnesium market continues.
With an annual production capacity of 20,000t of magnesium ingot, Jinchuan Magnesium maintains an average monthly output of 1,600t now and holds limited stocks. The company originally planned to further expand its production capacity at the end of this year; but restrained by weak demand, it decided to shelf the plan for the time being. It has been referring to information provided by Asian Metal for a long time. Mr. Wang thought highly of objective, fair and timely market information provided by Asian Metal and planned to participate in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.
At last, Ms. Daphne Zhang visited Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. and communicated with the company's General Manager Mr. Wang Baolin on current production status and future development plan of the company. Jinchuan Hongtai Magnesium Alloy focuses upon production of magnesium ingot 99.9%min and has an annual production capacity of 20,000t, maintaining an average monthly output of 1,500t. According to the cooperation agreement the company has reached with Chongqing Yuanhe Litai Magnesium Alloy Production Co., Ltd., the latter will build magnesium alloy and die-casting production lines at Jinchuan Hongtai Magnesium Alloy so as to directly consume some crude magnesium products to produce magnesium alloy; and to advance applications of magnesium products which have advantages of being recyclable and light weight, the two companies now consider to produce electric wheelchairs, safety helmet, safety door and so on.
Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. has cooperated with Asian Metal for many years. Mr. Wang highly praised Asian Metal for providing objective, fair and timely market information. He also gave positive comments on previous magnesium summits held by Asian Metal and planned to participate in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.
