Asian Metal visits Jinwantong Magnesium and Xintian Magnesium Alloy

On November 28, 2019, Asian Metal Senior Magnesium Analyst and Senior Product Manager Ms. Daphne Zhang visited Fugu Jinwantong Magnesium Co., Ltd. and Fugu Xintian Magnesium Alloy Co., Ltd., and was warmly greeted by the above companies.

On the morning of November 28, Ms. Daphne Zhang first visited Fugu Jinwantong Magnesium Co., Ltd. and exchanged views with the company's Sales Director Mr. Wang Lei on magnesium ingot production cost structure and current market conditions. Though coal prices are high at present, magnesium ingot producers find it hard to sell their side product semi-coal and even suffer losses in semi-coke production; as a result, production costs of magnesium ingot hover at a high level. But restrained by weak demand, magnesium ingot producers feel no confidence in making sales. Under such a background, Jinwantong Magnesium still maintains steady production and is active in making sales so as to keep its stocks at a low level.

With an annual production capacity of 40,000t of magnesium ingot, Jinwantong Magnesium has an average monthly output of 3,000t, in addition to an output of 400t of T-type magnesium ingot. At present it holds no stocks of ordinary magnesium ingot and only 350t of T-type stocks. The company has been using Asian Metal prices as its pricing guidance when signing purchase and sales contracts. Mr. Wang 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, planning to participate in the 9th Magnesium Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.

Afterwards, Ms. Daphne Zhang visited Fugu Xintian Magnesium Alloy Co., Ltd., where she met and communicated with the company's General Manager Mr. Su Haibo and Sales Manager Mr. Wang Weiping on current supply-demand status and future development trends of the magnesium market. According to Mr. Su, relation between market supply and demand is the fundamental reason for fluctuations in magnesium prices, and as demand is weak while supply remains sufficient in the magnesium market in December, magnesium ingot prices are expected to remain at a low level on the whole. But to ensure stability among employees and continuity in production, the company has no plan on cutting production. Later, Mr. Daphne Zhang was showed around the company's full-chain vertical reduction process. Xintian Magnesium Alloy is the first magnesium ingot producer in Shaanxi adopting vertical reduction process; so far, all vertical jars have been put in place and commissioned, and are expected to go into trial operation on around December 10 for production cost calculation and product quality tests.

Xintian Magnesium Alloy has an annual production capacity of 35,000t of magnesium ingot and its vertical jars have an designed capacity of 25,000t. It maintains an average monthly output of 2,400t of magnesium ingot now. Also a years-long partner of Asian Metal, Xintian Magnesium Alloy has been referring to market information and prices provided by Asian Metal for long. Both Mr. Su and Mr. Wang 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, planning to participate in the 9th Magnesium Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.