Asian Metal: Mr. Saito Hajime, thank you for taking the interview by Asian Metal. Please introduce your business briefly.

Saito Hajime: Chuokosan Co., Ltd. mainly produces and sells the following products: various anode materials for electrical corrosion protection, chemical and pharmaceutical grade magnesium powder, magnesium alloy granule, special magnesium alloy, aluminum alloy, reproduction of magnesium and magnesium alloy. Meanwhile, we also concern with investigation, design and construction of electrical anticorrosion. In addition, we also import magnesium products for selling purpose and?undertake OEM business entrusted by customers.

Asian Metal: How do you think about the supply and demand of magnesium products in Japan in 2019? How do you arrange you procurement for magnesium ingot?

Saito Hajime: It is expected that the demand for magnesium products in Japanese market will move up by 9.4% YOY in 2019. In particular, due to rising consumption for car industry in Japanese market, the demand for magnesium products from metal construction industry will increase. The demand for magnesium products from die-casting molding, injection molding, casting and plate industries is estimated to increase by 8.8%. Meanwhile, consumption as a kind of additive by aluminum alloy additives, titanium products, chemical catalysts and steel additives industries is expected to increase by 8.4% YOY. In addition, the consumption by antiseptic and some other special industries also will increase. Given these situations, the consumption of magnesium products in Japan will increase by 9.4% YOY in 2019.

In order to guarantee the steady procurement for the raw material, we mainly purchase magnesium products in China and also buy some from other countries as well. Meanwhile, we hold proper stocks in usual.

Asian Metal: In July and August, it is off season for magnesium industry and some Chinese magnesium ingot plants will decrease or suspend the output to deal with the equipment maintenance during that time. How about your company?

Saito Hajime: Actually, our output is very stable and we have no plan to stop the production to deal with the equipment maintenance during hot summer. Therefore, the output of magnesium products will remain stable and we will keep purchasing raw material steadily.

Asian Metal: In the recent years, the environmental protection policy for magnesium industry in China is very strict. How about the situation in Japan?

Saito Hajime: In Japan, we have strict environmental protection requirements related to the following problems: air pollution, water pollution, pungent smell. The related laws are as followings: air pollution prevention law, water pollution prevention law, drainage law, waste treatment and cleaning related laws.

Asian Metal:?As I known, the demand for magnesium products in Japan is very stable. Its annual consumption volume for magnesium ingot, magnesium alloy and magnesium powder is 30,000t, 4,500t and 3,500t respectively. Could you list the reasons on limitation of magnesium products in Japan?

Saito Hajime: firstly, worry on stability of prices and supplies for magnesium products.

Secondly, it is the safe operations on magnesium products. In the manufacturing process of magnesium products, it is necessary to have a complete operation management, anti-burning countermeasures in melting, safety countermeasures in die casting, combustion prevention of cutting chips and micro powder generated by mechanical processing, and safety treatment of non-burning and stabilization in waste.

Thirdly, even though magnesium products are very light, the production cost increases due to difficulty on processing and rust prevention.

Fourthly, the price of magnesium plate is much higher than that of aluminum, which is a major reason to restrict the sales of magnesium plate in the market.

Asian Metal: In your opinion, what will be the growth point for the promotion and application of magnesium products in Japanese market?

Saito Hajime: Firstly, as for the lightweight on the high-speed rail vehicles and aircraft, we expect to see the development on the new magnesium alloy.

Secondly, we could do the research on the application of magnesium alloy in the fields of artificial joint replacement, bone grafting, plastic surgery, dental implant and other fields.

Thirdly, magnesium batteries can reduce the cost of family, business and automobile expenses in storage battery consumption. The output power of solar and wind power generation can be adjusted by magnesium battery instead of relying on the previous LNG firepower and pumping water.

Asian Metal:?Does your company plan to develop magnesium alloy downstream products? How do you plan to promote it?

Saito Hajime: Chuokosan has brought in the test equipment. In addition, we are developing corrosion resistant alloy, heat resistant alloy and other special new alloys.

Asian Metal:?Thanks for accepting our interview. Wish Chuokosan a better development in the future.

Saito Hajime: Thanks! Let's work together and look forward to a better tomorrow. In addition, we also expect that Asian Metal sticks to the principle of objectiveness and timeliness to serve clients with better information about the magnesium market.