Asian Metal visits Taiyuan Kang Mei Technology Development, Shanxi International I&E, Shanxi Pan Asia Magnesium and Taiyuan Yiwei Magnesium

Daphne Zhang, Senior Analyst of Minor Metal Department from Asian Metal visited Kang Mei Technology Development Co., Ltd., Shanxi International I&E Co., Ltd., Shanxi Pan Asia Magnesium Co., Ltd. and Taiyuan Yiwei Magnesium Co., Ltd. during December 4-5 and engaged in discussions covering every aspects of magnesium metal market in 2014 and exchanged ideas for the market trend in the remainder of December.

On the morning of December 4, Daphne Zhang visited plants from Taiyuan Kang Mei Technology Co., Ltd., and exchanged ideas on magnesium alloy market trend with Li Jiebin, Vice General, Shi Yongwei, Sales Manager and Yang Xiowei, Production Manager from Kang Mei. Currently the monthly output of magnesium alloy in Kang Mei is about 1,300 tons, and the materials are sold to domestic and overseas markets with highly praise from end users. Commenting on the magnesium summit being organized by Asian Metal and scheduled on April 16-17 in Chengdu next year, the related persons in Kang Mei confirmed that they will attend actively with intention to know more peers and broaden sales channel.

Taiyuan Kang Mei Technology Development Co., Ltd. mainly produces magnesium alloy, magnesium alloy die-casting products, extrusion products and all kinds of precision molds with advanced production and deep processing facilities which include 16 mold processing equipments, 2 magnesium product lines, 5 magnesium alloy die-casting machines, 2 extrusion press product lines, a pretreatment line, 2 spray coating lines, and various deep-processing facilities.

On the morning of December 5, Daphne Zhang visited Shanxi International I&E Co., Ltd., and shared opinions on the future market trend with Wei Wei, General Manager from Shanxi International. Commenting on the magnesium ingot export business, Mr. Wei confirmed that price competition is very fierce recently, and some enterprises in formal way even were forced to retreat from market. With stable quality, good reputation and excellent service, Shanxi International stands in magnesium metal export market and ensures the substantial export volume on magnesium ingot and alloy.

The next leg of the visit was to Shanxi Pan Asia Magnesium Co., Ltd., which afforded Asian Metal to share opinions on the market state in 2014 and anticipation on the market trend in 2015 with Mr. Wen Tao, Sales Director from Pan Magnesium, and Mr. Wen revealed that price of magnesium ingot trend depends on supply-demand relationship. In 2014, price of magnesium ingot remained at low level owing to oversupply but weak demand, entering Q4, price of magnesium ingot even down to historical low level, and most suppliers suffer a lot on low price level. However, market did not believe in tears, and the demand and supply state decided the future price trend. In recent weeks, even though price of magnesium ingot shows firm state on few stocks on hand, tight funds will still trouble insiders for the future time. Given this situation, Mr. Wen urged caution to market and run down stocks on hand to low level.

After that, Daphne Zhang visited Taiyuan Yiwei Magnesium Co., Ltd., and exchanged ideas on market state with Ms. Shen Huiling, Sales Manager from Yiwei. Considering weak demand and low price trend, currently Yiwei has cut down monthly output to 1,500 tons. Meanwhile, Ms. Shen confirmed that she will reduce output to restrain more losses further if price keep low level in the future time.