Shaanxi Hongtai Yuanhe Magnesium to produce magnesium alloy in the middle of April
2020-03-12 09:36:02 [Print]
BEIJING (Asian Metal) 12 Mar 20 - In order to strength market competition, Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. cooperated with Chongqing Yuanhe Litai Magnesium Manufacture Co., Ltd. and they established Shaanxi Hongtai Yuanhe Magnesium Co., Ltd. from late 2019. They mainly focus on the production of magnesium ingot, magnesium alloy and downstream die casting material. Currently, Hongtai Yuanhe already finished the equipment installation for die casting to produce cylinder cover. They intended to finish the installation of magnesium alloy equipment, but postpone the plan to the middle of April restricted by coronavirus.
"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. Currently, we have finished 1million of die casting production line and intended to finish 10,800t of magnesium alloy production line in the middle of March, but to postpone the plan to the middle of April restricted by coronavirus," said a source from Hongtai Yuanhe, noting that they still have about 80t of magnesium alloy, which bought in late January, to produce cylinder head casing. In addition, they plan to add different kinds of die casting products according to the market requirement.
With an annual production capacity of 20,000t, Jinchuan Hongtai Magnesium Alloy only produced about 750t of magnesium ingot in February owing to lack of coal and plans to produce about 1,500t in March.
Presently, mainstream Shaanxi magnesium ingot prices hover at RMB13,800-13,900/t (USD1,971-1,985/t) EXW D/P, down by about RMB150/t (USD21/t) from late last week. Due to sufficient supply but slow movements among downstream industry, insiders still hold pessimistic attitudes towards the market trend and buyers only buy the metal on the rigid demand. Meanwhile, prevailing Chinese magnesium alloy prices show softening trend in view of price trend for magnesium ingot and stand at RMB15,900-16,200/t (USD2,271-2,314/t) EXW D/P. Most magnesium alloy plants hold low operation rates restricted by weak demand from downstream die casting and related industries.
"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. Currently, we have finished 1million of die casting production line and intended to finish 10,800t of magnesium alloy production line in the middle of March, but to postpone the plan to the middle of April restricted by coronavirus," said a source from Hongtai Yuanhe, noting that they still have about 80t of magnesium alloy, which bought in late January, to produce cylinder head casing. In addition, they plan to add different kinds of die casting products according to the market requirement.
With an annual production capacity of 20,000t, Jinchuan Hongtai Magnesium Alloy only produced about 750t of magnesium ingot in February owing to lack of coal and plans to produce about 1,500t in March.
Presently, mainstream Shaanxi magnesium ingot prices hover at RMB13,800-13,900/t (USD1,971-1,985/t) EXW D/P, down by about RMB150/t (USD21/t) from late last week. Due to sufficient supply but slow movements among downstream industry, insiders still hold pessimistic attitudes towards the market trend and buyers only buy the metal on the rigid demand. Meanwhile, prevailing Chinese magnesium alloy prices show softening trend in view of price trend for magnesium ingot and stand at RMB15,900-16,200/t (USD2,271-2,314/t) EXW D/P. Most magnesium alloy plants hold low operation rates restricted by weak demand from downstream die casting and related industries.
Magnesium Alloy AZ91D EXW China
Unit:RMB/mt
China magnesium alloy producers' suspension number statistics by month
Unit: pcs
