- On the morning of December 26, 2024, Ms. Daphne Zhang, the Consultant & Senior Product Manager of Asian Metal, visited Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. During the visit, she exchanged views with Mr. Baolin Wang, Vice Chairman of the company, on the current supply and demand of magnesium market in 2024, as well as the response strategies of magnesium enterprises. They also conducted in-depth discussions on the global magnesium market demand and application prospects in 2025. Mr. Wang noted that magnesium enterprises have faced the dual pressures of furnace upgrades and stricter environmental protection requirements in the recent years. As a result, these enterprises have continuously invested to meet the demands of industrial policies. However, in the face of the ongoing economic recession, magnesium enterprises are generally experiencing a difficult period, marked by large investments and continued losses. Looking ahead to 2025 and beyond, Mr. Wang emphasized that insiders in the magnesium industry will face heavy burdens as they move forward, and the path ahead will be long and challenging.
From Left: Baolin Wang, Daphne Zhang
- Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. is located in Changfangliang Village, Laogaochuan Town. The company has made a total investment of 420 million yuan and has constructed a magnesium workshop with a gasification section, a 110 kV substation, a ferrosilicon workshop, a 2x6MW preheating power generation unit, and a 1 million-ton modified magnesium slag grinding station (currently in the preparatory stage). Annually, the company produces 20,000 tons of magnesium metal, 600,000 tons of semi-coke, 45,000 tons of tar, a certain ferro-silicon output produced by 2x25,000 kVA furnaces, and 82.08 million kWh of waste heat power generation. In March 2019, Shaanxi Hongtai Yuanhe Magnesium Co., Ltd. was established, with plans to build an annual production line for 50,000 tons of magnesium alloy deep-processing products. The goal is to produce high-quality magnesium alloy products through alloying, high-pressure forming, fine processing, and performance treatment of magnesium. Currently, the company’s annual output of magnesium alloys and magnesium bars is 20,000 tons. The company also produces a variety of other products, including magnesium alloy helmets, magnesium alloy automobile engine cylinder head covers, magnesium alloy automobile oil pans, new energy vehicle gearbox housings, new energy vehicle power motor housings, electric vehicle wheels, electrical integrated boxes, and more. The total planned investment for this project is 80 million yuan, of which 50 million yuan has already been invested. The project includes the construction of 3 die-casting production lines, 1 mechanical processing production line, 1 micro-arc oxidation line, 1 impregnation line, and 1 electrostatic spraying line. It has an annual production capacity of 1.5 million magnesium alloy helmets, 1.3 million electric vehicle safety helmets, and 1.5 million automobile engine parts.
- Jinchuan Hongtai has long valued and utilized the price information of Asian Metal as its supply and marketing price index. The company has highly praised Asian Metal’s timely, rigorous, and objective market reports. Additionally, Jinchuan Hongtai recognizes the significance of the previous magnesium summits organized by Asian Metal and has expressed its intention to actively participate in the 13th Magnesium Summit, which will be held in Xiamen on April 10-11, 2025.
