Analysis report of the market and investment of Magnesium and
Magnesium Alloy in China
(2007)
Introduction
In 2006, according to statistics by Magnesium Association of
China Nonferrous Metals Industry, production capacity of 86
magnesium melting plants was 0.9024 million tons, increasing by
10.63% year on year and 3.63 percentage points higher year on
year. Statistics shows that output of 80 primary magnesium
(ingot) enterprises was 0.5256 million tons, increasing by
12.40% year on year and 8.5 percentage points higher year on
year; output of magnesium alloy was 0.2110 million tons,
increasing by 20.50% year on year; output of magnesium granule
(powder) was 0.1204 million tons, increasing by 39.68% year on
year. In 2006 output of primary magnesium was 2.7 times that in
2000 with an annual growth rate of 15.25% and ranked No.1 in the
world for nine consecutive years.
In 2006, there were 6 enterprises whose productive capacity
exceeded 0.03 million tons and their total productive capacity
was 0.3510 million tons, accounting for 38.90% of national gross
productive capacity, increasing by 9.11 percentage points year
on year; output of four enterprises exceeded 0.03 million tons,
and their total output was 0.2033 million tons, accounting for
38.68%, increasing by 14.86 percentage points year on year.
Therefore, in 2006 productive capacity and output of magnesium
melting enterprises over 0.03 million tons accounted for 38.9%
and 38.68% of the national gross productive capacity and output
respectively, increasing by 9.11% and 14.86% respectively.
Magnesium enterprises keep developing to large scale and
enlargement and industrial concentration of magnesium melting
enterprises has been further increased.
Table of Contents
1 Industry description 5
1.1 The definition and characteristics of Magnesium and
Magnesium Alloy 5
1.1.1 The definition and performance of Magnesium 5
1.1.2 The definition and characteristics of Magnesium Alloy
6
1.2 The reserve of Magnesium 7
1.2.1 The reserve of Magnesium in the world 7
1.2.2 The reserve and distribution of Magnesium in China 8
2. Output, consumption, import and export of Magnesium in China
10
2.1 Output of China¡¯s Magnesium and Magnesium Alloy 10
2.1.1 China¡¯s production of magnesium in 2007 10
2.1.2 Output of China¡¯s Magnesium in 2006 11
2.1.3 Analysis of China¡¯s magnesium production characteristics
in 2006 18
2.1.4 Output of China¡¯s Magnesium during 2005 23
2.2 Import and export of China¡¯s Magnesium 28
2.2.1 Volume of import and export of China¡¯s Magnesium 28
2.2.2 Structure of exported Magnesium products and foreign
exchange earnings through export 32
2.2.3 Regions to which Magnesium is exported 33
2.3 Consumption of Magnesium in China 34
2.4 Analysis of Magnesium market 36
2.4.1 Review of China¡¯s Magnesium market in 2005 36
2.4.2 Retrospection on international Magnesium market 39
2.4.3 Market analysis of Magnesium in 2006 42
2.4.4 Analysis of China¡¯s magnesium market in 2007 46
3 China's political environment for the development of Magnesium
industry 49
3.1 China¡¯s related encourage policy for Magnesium industry 49
3.1.1 Import and export policies 49
3.1.2 Export tax rebates 51
3.1.3 Government pay great attention to the development of
Magnesium alloys, high-quality magnesium alloy is listed into
encouraged catalog 52
3.2 The policies of China Magnesium industry 53
3.3China Magnesium industry ¡°eleventh-five¡± programming and
future guide policy 55
4. Magnesium Alloy application status and market demand analysis
57
4.1 The current Magnesium Alloy industry application trend 57
4.2 China Magnesium Alloy die-casting products market 59
4.3 Application of China¡¯s Magnesium Alloy 62
4.3.1 Application of Magnesium Alloy in mechanical transport
industry 62
4.3.2 Air and Space, and war industry 64
4.3.3 3C and electronic industry 64
5 Investment Analysis of China¡¯s Magnesium Alloy Industry 65
5.1 Demand forecast of Magnesium Alloy industry 65
5.1.1 Application trend of Magnesium Alloy 65
5.1.2 Practical application and market situation 65
5.2 Development of Magnesium Alloy die-casting product in China
68
5.2.1 Magnesium Alloy die-casting in cars 68
5.2.1 The applications of Magnesium Alloys in automobiles of No.
1 Automobile Company 69
5.2.2 The applications of Magnesium Alloys in Dongfeng
automobile 70
5.2.3The applications of Magnesium Alloys in Chang An automobile
71
5.2.4 Shanghai Qiantong Automobile Auxiliary Limited Company 72
5.2.5 Tianjin Liuhe Magnesium Product Limited Company 73
5.2.6 Oriental Pan Pacific (Shenzhen) Metal Product Limited
Company 74
5.2.7 Others 75
5.3 Projection of Magnesium Alloy market in China 77
5.4 Competitiveness analysis 79
5.4.1 Present competitiveness analysis 79
5.4.1.1 Casting industry in China 79
5.4.1.2 The developing instance of Magnesium Alloy die-casting
industry in Chinese Mainland 80
5.4.2 The industry entrance vallum analysis 81
5.4.2.1 High technology demand, large investment demand 81
5.4.2.2. The industry entrance enterprises increased rapidly,
lead a lower price probability 81
5.4.2.3. The Magnesium Alloy goods application market in
Domestic is quite lag than the international enterprises 82
6 Calculation of the investment to the typical die-casting
Magnesium Alloys program 82
6.1 The sum of the investment to die-casting Magnesium Alloys
program in various typical investment plans 82
6.2 Investment benefit analysis of typical Magnesium die-casting
plants 84
6.2.1 Production period and production capacity of typical
Magnesium die-casting plants 84
6.2.2 The market price and raw material consume of the typical
products of Magnesium die casting plant 84
6.3 Detailed cost composition of die-casting production,
extension processing and post treatment of magnesium alloy
die-casting project 85
6.3.1 Assistant material fee of die-casting production 86
6.3.2 Extension processing cost 86
6.3.3 Surface processing cost 86
6.4 Profit analysis of Magnesium Alloy die-casting projects 87
6.5 Benefit analysis of Magnesium Alloy die-casting projects 87
6.6 Risk assessment and avoidance measures of the investment on
Magnesium die-casting plants 88
6.6.1 The analysis of operation pressure 88
6.6.2 Risk analysis 90
6.6.3 Risk Aversion Strategy 93
7 Introduction of major Magnesium enterprises in China 94
7.1 Taiyuan Tongxiang Magnesium Co., ltd 94
7.2 Shanxi Wanke Jinrun Magnesium Co., ltd 95
7.3 Shanxi Wenxi Yinguang Magnesium Group 95
7.4 Ningxia Huiye Magnesium Company 96
7.5 Ningxia Huayuan metallurgy Industrial Co. Ltd 97
7.6 Shanxi Golden Jinxin Magnesium Corporation 97
8. Main economic indicators of Magnesium Mining industry in
China 98
8.1 The basic condition of Magnesium mining industry in China 98
8.2 Assets and liability of Magnesium mining industry in China
101
8.3 Sales and profits of Magnesium mining industry in China 104
8.4 Financial ratio of Magnesium mining industry in China 108
9. Main economic indicators of Magnesium smelting industry in
China 111
9.1 The basic Condition of Magnesium smelting industry in China
111
9.2 Assets and liability of Magnesium smelting industry in China
113
9.3 Sales and profits of Magnesium smelting industry in China
119
9.4 Financial ratio of Magnesium smelting industry in China 127
9.5 Economic indicators of the former ten enterprises of
Magnesium smelting industry in China 134
Figures 142
Tables 142
Figures
Figure 1 Output of China¡¯s primary magnesium and its position in
the world magnesium industry 10
Figure 2 Free on board (FOB) of 99.8% Magnesium ingot of Tianjin
harbor in 2005 (US dollar/ton) 23
Figure 3 Graph 1 the average price of magnesium ingots of 99.8%
storage in Rotterdam in 2005 (dollars/ton) 28
Figure 4 DCC630M Die-casting facility from L.K Technology Group
54
Figure 5 Valve cover: Typical parts made of magnesium alloy
manufactured by of No. 1 Automobile Company 54
Figure 6 DCC630M Die-casting facility from L.K Technology Group
55
Figure 7 DCC1600M Die-casting facility from L.K Technology Group
55
Figure 8 DCC800M Die-casting facility from L.K Technology Group
56
Figure 9 Left and right Shell of Gearbox made of magnesium alloy
by Qiantong company 56
Figure 10 Gearbox made of magnesium alloy by Qiantong company 57
Figure 11 Steering wheel made of magnesium alloy by Qiantong
company 57
Figure 12 DCC630M die-casting machine of Liuhe Company 58
Figure 13 Product line of steering wheel made of magnesium alloy
58
Figure 14 Precision die-casting workshop of Oriental Pan Pacific
59
Figure 15 Products of Oriental Pan Pacific 59
Tables
Table 1 Magnesium production in China 9
Table 2 China¡¯s production of magnesium, Jan-Oct, 2007 10
Table 3 Output and growth rate of China¡¯s primary magnesium,
2001-2006 11
Table 4 Monthly output of China¡¯s magnesium during Apr 2004- Aug
2007£¨10000t£© 11
Table 5 Output of China¡¯s and world primary magnesium 12
Table 6 Number and scale of magnesium melting enterprises in
2005 and 2006 14
Table 7 Accumulative output of magnesium by month in 2006 16
Table 8 Top 10 enterprises of magnesium output in China in
2006(10000t) 18
Table 9 Change of main economic and technical indices year on
year 22
Table 10 Top 10 enterprises of magnesium output in China in 2005
23
Table 11 Top 10 enterprises of employees, sales income, profit
and total assets in internal Magnesium ores mining industry in
2005 25
Table 12 Top 10 enterprises of employees, sales income, profit
and total assets in internal Magnesium ores smelting industry in
2005 25
Table 13 Distribution of magnesium melting enterprises in 2005
27
Table 14 Scale change of magnesium smelting industry in 2001 and
2005 (unit: ton) 27
Table 15 Output and productive capacity of China¡¯s magnesium in
2005 (unit: ten thousand tons) 28
Table 16 Volume of import and export of Magnesium by year (t) 28
Table 17 Variation of export structure of magnesium products,
2000-2006 29
Table 18 volume of import of main Magnesium products of China,
2004-2005 (t) 30
Table 19 Variation of export structure of Magnesium products
2001-2005 (0.01 million tons) 32
Table 20 Volume of export of Magnesium and total foreign
exchange earnings 33
Table 21 Major countries to which China¡¯s Magnesium is exported,
quantity and proportion. 33
Table 22 Domestic magnesium consumption and growth, 2001-2006 34
Table 23 Comparison of domestic consumption fields of China¡¯s
Magnesium 2005 (0.01 million tons) 35
Table 24 Free on board (FOB) of 99.8% Magnesium ingot of Tianjin
harbor in 2005 (US dollar/ton) 36
Table 25 Free on board (FOB) of 99.8% magnesium ingot in China
in 2007 48
Table 26 A catalog of products adjusted in the export tax rebate
49
Table 27 Tariff No. and export tax rebate rate of Magnesium and
related products 51
Table 28 The main application field and the percentage of
magnesium 58
Table 29 China original magnesium consumption in 2003 (unit:
1000) 60
Table 30 The original magnesium dosage of big 3 magnesium using
industry in the main area of the world in 2003 (unit: ton) 60
Table 31 Magnesium alloy die-casting in the World auto industry
using since 1991 (unit: 1000ton) 61
Table 32 The region group of magnesium alloy die-casting in
Chinese Mainland 61
Table 33 Magnesium alloy parts of Ford in 2000 67
Table 34 Total projected market amounts to 4.5- 6.5 billion RMB
78
Traffic product market 78
Table 35 Total projected market amounts to 3.5- 5.0 billion RMB
78
Table 36 Production in 2003-2004 79
Unit: tons 79
Table 37 Proportion of casting products 79
Table 38 The area distribution of Domestic die-casting
factory/producing area 80
Table 39 The distribution of domestic die-casting corporation in
output/year 80
Table 40 The sum of the investment to die-casting magnesium
alloys program in various typical investment plans 82
Table 41 The market price and cost of the typical products of
magnesium die casting plant 84
Table 42 Production assessment table for the laptop shell 87
Table 43 £¨1£©Expenditure (Plan3 ¡ª¡ª 10 medium-sized enterprise
with 10 die-casting machines) 88
Table 44 Name of main products£º Magnesium alloy laptop shell
(the rate of the good for the products is 70 %.) 89
Table 45 Name of main products£º Magnesium alloy laptop shell
(the rate of the good for the products is 70 %.) 89
Table 46 Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of magnesium Mining industry in China from 2005 to Feb in 2007
98
Table 47 Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of magnesium Mining industry in China in December 2005 99
Table 48 Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of magnesium Mining industry in Liaoning from 2005 to Feb in
2007 99
Table 49 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Mining industry in China from 2005 to Feb in 2007 101
Table 50 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Mining industry in China in December 2005 102
Table 51 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Mining industry in Liaoning from 2005 to Feb in 2007 103
Table 52 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Mining industry in China from
2005 to Feb in 2007 104
Table 53 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Mining industry in Liaoning from
2005 to Feb in 2007 105
Table 54 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Mining industry in China in
December 2005 107
Table 55 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in China from 2005 to Feb in 2007 108
Table 56 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in China in December 2005 109
Table 57 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in Liaoning from 2005 to Feb in 2007 109
Table 58 Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of magnesium Smelting industry in China from 2005 to Feb in 2007
111
Table 59 Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of magnesium Smelting industry in China in December, 2005 112
Table 60 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Smelting industry in China from 2005 to Feb in 2007 113
Table 61 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Smelting industry in China in December, 2005 114
Table 62 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Smelting industry in Shanxi from 2005 to Feb in 2007 115
Table 63 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Smelting industry in Liaoning from 2005 to Feb in 2007 116
Table 64 Total assets,Total liability,average balance of
floating assets,average balance of net fixed assets of magnesium
Smelting industry in Henan from 2005 to Feb in 2007 118
Table 65 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Smelting industry in China from
2005 to Feb in 2007 119
Table 66 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Smelting industry in Shanxi from
2005 to Feb in 2007 120
Table 67 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Smelting industry in Liaoning
from 2005 to Feb in 2007 122
Table 68 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Smelting industry in Henan from
2005 to Feb in 2007 124
Table 69 Sales revenue,Sales cost,Sales expenditure,Total
profits,Total tax of magnesium Smelting industry in China in
December 2005 126
Table 70 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium smelting
industry in China from 2005 to Feb in 2007 127
Table 71 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in China in December, 2005 128
Table 72 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in Shanxi from 2005 to Feb in 2007 130
Table 73 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in Liaoning from 2005 to Feb in 2007 131
Table 74 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets,The best level of
Turnover frequency of floating assets,Sales rate Per capita,The
best level of Sales rate Per capital of magnesium Mining
industry in Henan from 2005 to Feb in 2007 132
Table 75 Number of enterprises ,Number of employees and
Industrial output of the former ten enterprises of magnesium
Smelting industry in China from January in 2004 to Dec in 2006
134
Table 76 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets ,Sales rate Per
capita (Yuan) of the former ten enterprises of magnesium
Smelting industry in China from January in 2004 to Feb in 2007
136
Table 77 Total number of Sales revenue,Sales profit,Sales
expenditure of Ten enterprise of magnesium Smelting industry in
China from January in 2004 to Feb in 2007 137
Table 78 Capital maintenance and increment ratio,Debt to assets
ratio,Turnover frequency of floating assets ,Sales rate Per
capita (Yuan) of the former ten enterprises of magnesium
Smelting industry in China from January in 2004 to Feb in 2007
141
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