After many consecutive days of trading before the festival, Yunhai Metal fluctuated green in early trading, but pulled up in a straight line after opening in the afternoon, sealing the trading limit again, and its share price has doubled in the past month.
It is reported that Yunhai metal is the leader of the magnesium industry, and the market share of magnesium alloy in the world is more than 35%. At present, the company has established a magnesium division, including Chaohu Yunhai magnesium industry, Wutai Mountain Yunhai magnesium industry, Huizhou Yunhai magnesium industry, Baotou Yunhai metal, at the same time established three major magnesium alloy supply bases. Anhui Chaohu Yunhai mainly faces Yangtze River Delta customers; Shanxi Wutai Yunhai mainly faces central and western customers and exports; Guangdong Huizhou Yunhai mainly faces Pearl River Delta customers. Chaohu Yunhai and Wutai Yunhai are the company's original magnesium production base.
From the point of view of production capacity, Yunhai metal magnesium alloy has a complete industry chain of "dolomite mining-original magnesium smelting-magnesium alloy melting-magnesium alloy precision casting, deformation processing-magnesium alloy recycling". The company now has an annual production capacity of 100000 tons of raw magnesium and 180000 tons of magnesium alloys. We are going to build an annual production project of 300000 tons of high-performance magnesium-based light alloy and 150000 tons of magnesium alloy deep processing products in Chizhou, Anhui Province. In 2021, the company acquired a 100% stake in Tianjin Liuhe magnesium products Co., Ltd., adding a new production base for automotive lightweight parts in the northern region, and the product supply capacity will be further strengthened.
This round of Yunhai metal shares rose one after another, mainly driven by higher magnesium prices. On September 22nd, the average spot price of SMM magnesium alloy AZ91D was 64100 yuan / ton, up 18000 yuan / ton over the previous trading day, or 39.05% a day, an astonishing increase.
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According to the survey of magnesium alloy production in China in SMM8 month, the output of magnesium alloy in China was 18250 tons in August, a month-on-month decline of 40%. Yunhai Metal said on the investor interactive platform on September 9 that the company's magnesium alloy production increased month-on-month, accounting for more than 35% of the world's magnesium alloy production.
After the release of double-control documents on energy consumption in the market last week, the price of magnesium rose, and the factory directly announced that it would suspend the quotation and wait and see the future. Under the stimulation of the policy side, the magnesium factory is extremely eager to rise, but as the details of the implementation of the follow-up policy have not yet been released, and when the reduction and shutdown work will be carried out is not specified, the magnesium factory has no choice but to suspend the quotation and spare no efforts in production to ensure the delivery of follow-up orders. Some magnesium factory sales staff said that the specific implementation rules of the energy consumption double control strategy have not yet been released, and the future trend of magnesium prices is not clear, so they have no choice but to take a wait-and-see situation.
On the demand side, the recent 78th World magnesium Conference of the International magnesium Association, Australia's CM Consulting Company said that in 2021, the magnesium market recovered significantly and prices rebounded. Global magnesium consumption is expected to grow by 8% this year, of which magnesium consumption in China is expected to grow significantly by 11%.
SMM believes that under the circumstances that the policy of double control of energy consumption has not yet landed, relevant enterprises in the magnesium industry need to treat this round of magnesium price rise rationally, guard against the risk caused by high magnesium price shocks, and continue to pay attention to the policy landing situation in the follow-up.
