End of Summit

Asian Metal successfully held “2nd World Magnesium Forum” in Hangzhou, Zhejiang from March 20-22, and almost 150 representatives attended in the forum.

The forum started officially from 9:00 am on March 21, and Guangning Zhang, General Manager of Shanxi Credit Magnesium Co., Ltd. made the opening speech. He pointed out that the core for future competition will still be sustainable internal management, precedent cost control and strict quality management. Simple mimic and blind follower would narrow the future development with higher cost; the price war will deteriorate the magnesium industry chain. Innovative evolution is the only method that pictures a bright future for the industry. Magnesium companies shall endeavor on client service wholeheartedly and provide personalized service to satisfy client need in all directions. Convenience is for clients, and challenges are for us. Magnesium companies shall highlight the quality and the weight as the quality strictly meet the demand of client and risk of short in weight shall be avoided through strict confirmation. Any quality or weight inconsistency shall be undertaken by magnesium companies, and compensate shall be conducted, leaving loss for ourselves other than clients or buyers; Secondly, ensure quality and delivery effectiveness based on contractual performance and term, and endeavor to upgrade logistic service and downsize logistic cost, provide convenient delivery to lift the cost effectiveness for clients and decrease market risk.

Daniel Chu, Manager of Trade Department of Yulin Tianlong Magnesium Co., Ltd. followed to provide a report on the current raw magnesium market, namely “Brief Discuss on how to lift internal competitiveness for magnesium companies”. The report addressed that magnesium companies shall enhance competitiveness on market-orientation and client-orientation. Amid which, the client-orientation competitiveness shall focus on product quality and packaging while on-time delivery and benign after-sales service are necessary; In addition, the market-orientation competitiveness shall be featured with sustainable supply, well-deserved reputation and stable price. Thirdly, talent and team work guarantee the sustainable competitiveness and support the steady operation of companies. On raw magnesium market, China has occupied over 50% of global raw magnesium production since 2002 with the figure steady uplifting on a year basis, and China owns over 80% of global raw magnesium currently benefiting from abundant magnesium resource and huge coal reserve as well as relatively low cost on labor force that provide first-class cost-efficiency.

However, current Chinese raw magnesium market is pessimistic. Competitions between magnesium companies in different regions become increasingly fierce under the circumstance that the oversupply on domestic market accompanies with the sluggish export market. Production of magnesium metal heavily relies on the coal resource, which enables regions with higher production of coal and lower cost with cost advantages, and companies in Shaanxi and Xinjiang are growing as the new power in the industry. Owing to the soft consumption and the fierce competition, the margin for the whole industry chain has squeezed to a relatively low level and some players have incurred losses in a long-term stance. The production-orientation tragedy is caused by the disorder of market and the soft downstream demand. Solutions to these problems will bring a bright future for magnesium companies. Look forward to a brighter future for magnesium market.

Export tariffs of magnesium products have been wiped out fully since January 1, 2013. For the future export market, insiders hold mixed opinions. Atul.Malhotra, Head of worldwide procurement of Georg Fischer Automotive analyzed the status of European magnesium industry and the outlook on market. With expanding usage of magnesium in automobile industry, more problems would emerge, and the national policy and the cost expenditure would drive the running of magnesium market.

Dr. Zisheng Zhen, CTO of APAC market of Magontec Xi’an Co., Ltd. discussed the strategic distribution of the company and addressed the progress of new alloy product, and his profession on academy and technology was widely admitted by attendees.

Dr. Zhanghong Huang, Chief Youth Technician of Western Metal Material Co., Ltd. discussed the topic of “Development of Wide Magnesium Alloy Sheet”, and probed the status and the development of magnesium sheet.

Professor Gaofeng Quan from Southwest Jiaotong University addressed the issue of high-strength magnesium alloy superplasticity and near-net shaping, and also analyzed the solutions for weight lighting demand for advance equipment, the characters of high-strength magnesium alloy and the superplasticity and near-net shaping for magnesium alloy.

Cao Jianyong, CEO of Chongqing Boao Mg-Al Manufacturing Co., Ltd. and General Manager of Chongqing Sun Magnesium Co., Ltd. gave a talk on application of magnesium alloy in war industry. Magnesium alloy is a kind of new type metal material that is light-weight and has high specific strength, small elasticity modulus as well as excellent damping property, process ability, heat-conducting and electromagnetic shielding property. These characteristics enable the material to be widely used in war industry.

After that, Deputy General Manager of Shanxi Gold River Metals Co., Ltd. Xiaosi Wu expressed opinions on machining of magnesium alloy parts. International application of major metal materials saw dramatic change in early 1990s. While application of traditional materials, including steel, copper, lead and zinc, suffered slow growth, light metal materials represented by magnesium alloy suddenly rose as a new force. Magnesium alloy, with unique property, began to be used in aerospace and automobile industry.

At last, Asian Metal invited well-known magnesium enterprises at home and abroad to discuss hot topics such as Chinese magnesium alloy market playing a more dominating role in the global market day by day and cost competitiveness and application prospect of die-casting magnesium alloy. Participants stated their opinions and expressed confidence in the prospect of the market.

The forum successfully concluded with the support from Asian Metal and sponsors of Shanxi Credit Magnesium Co., Ltd., Qinghai SunGlow Magnesium Co., Ltd, Yulin Tianlong Magnesium Co., Ltd, Shanxi Jinxing Magnesium Co., Ltd. and Zhejiang Yuanshi Magnesium Alloy Co., Ltd. as well as other attendees.

With experienced hosting of summits for minor metals, Asian Metal sincerely thanks for support and corporation of companies in the related industries, and Asian Metal will continue to contribute with profession as always. Look forward to the meeting on magnesium forum next year.