Asian Metal visits Shanghai Regal, Wogen Metal Commercial, Novelis (Shanghai) and Rio Tinto (Shanghai)

On November 19, 2019, Asian Metal Senior Magnesium Analyst and Senior Product Manager Ms. Daphne Zhang visitedShanghai Regal Metallic Materials Co., Ltd. ("Shanghai Regal"), Wogen Metal Commercial (Shanghai) Ltd., Novelis (Shanghai) and Rio Tinto (Shanghai), and was warmly greeted by the four Shanghai-based companies.

On the morning of November 19, Asian Metal Senior Magnesium Analyst and Senior Product Manager Ms. Daphne Zhang first visitedShanghai Regal Metallic Materials Co., Ltd., where she met and exchanged views with the company's Sales Director Ms. Zeng Zhengrong on current developments and future trends of the magnesium ingot and magnesium alloy markets. They both agreed that expanding magnesium alloy applications in downstream industries might be quite helpful in enhancing magnesium alloy producers' competitiveness.

Located in Wenxi county, Shanxi province, Shanghai Regal's plant has an annual production capacity of 70,000t of magnesium alloy and maintains an average monthly output of 4,500t at present; it also has a 1,100tpa magnesium ingot production capacity. With clients mainly coming from auto, 3C electronics and electric tool industries, and having domestic and overseas business accounting for 50% respectively of its total sales, Shanghai Regal is the second largest magnesium alloy producer in China just after Yunhai Special Metals. Over the recent years Shanghai Regal has been devoting itself into improving production and product quality as well as into expanding its footprint into the global market. So far it has set up sales departments in the U.S. and Europe, and also has a recycling plant in Europe.

Having cooperated with Asian Metal for years, Shanghai Regal has been using Asian Metal prices as its pricing guidance in purchasing raw materials and selling products. Ms. Zeng Zhengrong thought highly of objective, fair and timely information provided by Asian Metal; she also gave positive comments on previous magnesium summits held by Asian Metal and will participate in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.

Afterwards, Ms. Daphne Zhang visited Wogen Metal Commercial (Shanghai) Ltd., and held in-depth discussions with the company's Procurement Manager Mr. Yin Jun on current supply-demand status and 2020 development trend of the magnesium market. According to Mr. Yin Jun, by mid-November most large-sized overseas consumers from the aluminum industry had nailed down supply contracts for 2020, so trading activities on the spot market were slowing down now.

As an established trading company for metallic products, Wogen Metal Commercial maintains an annual trading volume of nearly 8,000t of magnesium ingot and 1,200t of magnesium alloy. It imports magnesium ingot mainly from China and then sells to the rest of the global market. Mr. Yin Jun quite recognized magnesium summits Asian Metal organized previously, and planned to take part in the9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.

Following the trip to Wogen Metal Commercial (Shanghai), Ms. Daphne Zhang visited Novelis (Shanghai), and exchanged views with the company's Procurement Manager Mr. Zhu Junlin on current supply-demand status and production costs of magnesium products as well as on market trend in 2020. Mr. Zhu revealed that his company had basically inked supply contracts for 2020.

Novelis (Shanghai) produces mainly can stock and auto-purpose aluminum plates. Enjoying stable demand for its products, the company receives purchase orders steadily and makes smooth sales at present. Mr. Zhu Junlin also thought highly of magnesium summits Asian Metal organized previously, and planned to take part in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.

Ms. Daphne Zhang visited Rio Tinto (Shanghai) at the end of her trip, and talked with the company's Raw Material Procurement Manager Mr. Shen Ce and Procurement Consultant Mr. Li Guangzhao about current supply-demand status and 2020 development trends of the magnesium market. When talking about market demand, the Rio Tinto staff pointed out that consumption on magnesium products has dropped by over 20% in 2019 and is not expected to improve in 2020, as a result of weak demand from the auto industry,.

As a big consumer of magnesium ingot, Rio Tinto maintains an average annual consumption of 18,000t of magnesium ingot which is supplied to its over ten aluminum plants in Canada, Iceland, Australia, New Zealand and so on. As a years-long member of Asian Metal, Rio Tinto has been referring to Asian Metal prices when signing long-term and short-term contracts. Rio Tinto has profound understanding on and therefore thinks highly of the way Asian Metal collects market information and principles under which Asian Metal provides product quotations. Mr. Li Guangzhao showed great interest in and planned to take part in the 9th World Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.