Asian Metal visits Tianyu Magnesium

On the morning of November 29, Consultant & Senior Product Manager of Asian Metal, Ms. Daphne Zhang visited Shaanxi Tianyu Magnesium Co., Ltd., and was warmly greeted by Mr. Genyong Chen, president of Tianyu. Both sides held in-depth discussions and exchanged views on the high production cost for magnesium ingot caused by high coal prices but low semi-coke prices, coal shed construct, market supply-demand status, application and development in magnesium industry and export market. In 2019, in the aftermath of vigorous development in 2018, Chinese magnesium producers increased capacity, leading to oversupply in the market. With supply growing while demand shrinking, magnesium ingot prices decreased and magnesium producers felt difficulties in their operation. Since consumption in the Chinese auto market declined sharply and the steel industry fell into a plight, magnesium producers reported slim profit margins or even losses. In order to guarantee stable market transactions and get proper profits, Chinese magnesium ingot plants need to improve product quality, control cost and pursue customer service.

With an annual production capacity of 50,000t, Tianyu produced about 3,100t of magnesium ingot per month. As a member of Asian Metal, Tianyu has been using prices and other market information provided by Asian Metal for a long time, and has referred to Asian Metal prices in its magnesium ingot sales activities. Tianyu spoke highly of objective, timely and professional information provided by Asian Metal and would attend the 9th Magnesium Summit to be held by Asian Metal in Hangzhou on April 16-17, 2020.