2021 magnesium industry continues to take the road of green development

In 2021, under the background of carbon neutralization, the market situation of magnesium is changeable and the price fluctuates greatly. China's magnesium industry is a traditional smelting industry, and many enterprises have problems such as large consumption of high-carbon fuel, high energy consumption and low added value of products. In the process of achieving the goal of "double carbon", the magnesium industry is facing severe challenges, but challenges often coexist with opportunities. In the stage of accelerating the transformation and development of green and high quality, magnesium-based hydrogen storage, automotive lightweight and other magnesium applications gradually develop and mature. Expanding the application of magnesium has become the only way for the green development of magnesium industry. According to incomplete statistics of the magnesium Branch of China Nonferrous Metals Industry Association, from January to October 2021, China produced about 744200 tons of raw magnesium, of which Shaanxi produced about 455700 tons, Shanxi produced about 162300 tons, Inner Mongolia produced about 38000 tons, and other areas produced about 65000 tons.

From January to October 2021, China exported a total of 371800 tons of magnesium products, an increase of 18.11 percent over the same period last year, and a cumulative amount of US $1.243 billion, an increase of 66.12 percent over the same period last year. Of this total, magnesium ingots exported 214200 tons, up 31.33 percent over the same period last year; magnesium alloy exports totaled 87100 tons, up 2.59 percent over the same period last year; and magnesium powder exports totaled 61100 tons, up 11.7 percent over the same period last year.

China is a large country rich in magnesium ore reserves, and its magnesium output accounts for about 85% of the world's. The area with the largest original magnesium production capacity is Yulin City, Shaanxi Province, and Fugu County is the world's largest original magnesium production base. The output of this county accounts for 42% of the world's output in 2020. "the world magnesium industry looks at China and China's magnesium industry looks at Yulin". Shaanxi Province is rich in natural resources and the advantages of the industrial chain of circular economy in magnesium production. In recent years, raw magnesium production has gradually shown regionalization, clustering and cluster production. On the one hand, it can reduce costs; on the other hand, the distribution of industrial clusters is easier to form regional brands, which is conducive to attracting investment.

At the opening ceremony of the 24th annual meeting of the National magnesium Industry Conference and magnesium Branch on October 19, 2021, the Fugu magnesium trademark was officially issued, which will effectively enhance the market popularity and reputation of "Fugu magnesium". Continue to accelerate the high-quality development of Fugu magnesium industry.

1. High roller coaster operation with magnesium price

From January to February of 2021, the average price of magnesium was 14538.46 yuan / ton, up 0.26% from the same period last year. The reasons for the slight price increase at the beginning of the year are, on the one hand, after the Spring Festival, the prices of non-ferrous metals and chemical raw materials have generally risen, market turnover has increased, magnesium prices have risen sharply, and the lower reaches have actively entered the market, which has continued to promote the rise of magnesium prices in the short term; on the other hand, the electricity costs of ferrosilicon enterprises in Inner Mongolia have increased, and ferrosilicon prices have risen, driving magnesium prices to rise further. In the first half of 2021, the price of magnesium fluctuated continuously around 20,000 yuan / ton, the high price of magnesium was consolidated, and the market wait-and-see atmosphere was strong.

In September 2021, the average daily fluctuation range of magnesium prices was 30500 yuan / ton, and the average monthly price was 41751.29 yuan / ton, up 229.68% from the same period last year. In late September, magnesium prices continued to soar, reaching a record high of 71000 yuan / ton. In December, magnesium prices showed an upward trend again, and on December 24, magnesium prices again exceeded 50,000 yuan / ton, and there was a new surge in the last few days of 2021.

The high shock and large fluctuation of magnesium price is the result of the joint influence of many factors.

The cost of raw materials for implementing the "double carbon" target has risen sharply.

The magnesium industry in Shaanxi is mostly a recycling industry of blue carbon-ferrosilicon-magnesium. In 2021, the price of ferrosilicon, the raw material for the production of magnesium ingots, rose from 5600 yuan / ton at the beginning of the year to 22000 yuan / ton, and the price of coal rose from 350 yuan / ton to 1500 yuan / ton. Ferrosilicon and coal prices remain high, and the cost of magnesium ingots continues to rise.

Since the "double carbon" goal was put forward, various parts of the country have responded positively: coal enterprises have limited power, electricity costs have increased, the prices of raw materials such as coal and ferrosilicon have risen sharply, and costs have continued to rise, and magnesium factories have offered firm quotations under cost pressure; in addition, downstream users have seen high prices and weak demand, taking a wait-and-see attitude; then, magnesium enterprises have been forced to reduce prices in order to withdraw funds, and magnesium prices have dropped slightly, and downstream users have entered the market to purchase. Magnesium prices fluctuate repeatedly, and downstream users hover between waiting and entering the market, resulting in magnesium prices rising sharply and falling slightly.

Implement double control of energy consumption, power outage and production of some magnesium enterprises.

In September 2021, the intensity of double control and power restriction is increasing. Shaanxi Province, as a major province of magnesium smelting, is listed as a key regulatory area, strictly controlling pollution reduction and carbon reduction. The "two high" projects will be the key targets, and some magnesium enterprises will have power outages and production cuts, and the operating rate may be reduced by less than 20%. The magnesium production capacity of Shaanxi Province accounts for more than 80 per cent of the total domestic production capacity, and the supply has been reduced, making the already high magnesium price "soaring into the sky", with the highest daily increase of 18500 yuan per ton.

This policy of double control of energy consumption has had a great impact on magnesium smelting enterprises, but in the medium to long term, the tightening of double control of energy consumption will continue to accelerate the increase in the proportion of green energy, and high energy-consuming enterprises will take substantial measures to increase investment in energy conservation and consumption reduction. the increase in magnesium smelting costs, the possibility of a sharp reduction in magnesium prices is relatively low, and the implementation of the energy consumption double control policy can make some inefficient and high pollution smelting enterprises withdraw from the market. To some extent, it suppresses the situation of inefficient overcapacity.

The cost of implementing the standard raising of environmental protection inspectors has increased.

In 2019, Yulin City launched a three-year action plan for the upgrading and green development of the orchid carbon industry to upgrade and transform the orchid carbon production plant with a capacity of less than 75000 tons per furnace. Due to the intersection of the smelting gas distribution section and the orchid carbon production plant, the original magnesium production enterprises have begun to upgrade and upgrade, increasing capital investment and increasing production costs.

In December 2021, Shaanxi, the inspector of the third Ecological Environmental Protection Supervision Group of the Central Committee, found that some places in Yulin City failed to eliminate the backward production capacity of Lanchan, the problems of illegal construction were frequent, the mode of production was extensive, and the environmental problems of industrial parks were prominent. Under the influence of environmental inspectors, some factories have stopped production and overhauled, and the spot has decreased, unable to meet the downstream market, and the price of magnesium has once again risen sharply by thousands of yuan a day.

two。 Application of magnesium to practice the New concept of Green Development

In recent years, magnesium not only has a wide range of applications in aviation, aerospace, rail transit and other fields, magnesium has gradually come into people's daily life, magnesium bicycle frame, magnesium alloy mobile phone metal heat dissipation bracket and so on have been put into production.

Mg-based solid state hydrogen storage materials

On June 22, 2021, the Resource and Environment Research Branch of China Institute of Standardization held a group standard launch meeting on "Technical requirements for magnesium-based hydride solid-state hydrogen storage system" in Beijing. The compilation of this standard will help to promote the application and promotion of solid-state hydrogen storage technology, and play an important supporting role in the high-quality development of hydrogen industry and helping China to achieve the goal of "double carbon".

On October 29, 2021, the group standard "Technical requirements for solid-state hydrogen storage and transportation system of magnesium-based hydride" was jointly approved and issued by Shanghai Energy Saving Association and China Energy Saving Association, and became the first standard on solid-state hydrogen storage and transportation technology of magnesium-based hydride in China. The standard has been implemented on November 1.

In December 2021, the National Energy Administration announced that it will focus on tackling key technologies in key areas such as gas turbines, nuclear power, renewable energy, oil and gas, energy storage and hydrogen energy next year, and strive to make breakthroughs in green and low-carbon cutting-edge technologies.

As a reversible hydrogen storage medium, mg-based solid-state hydrogen storage materials have the advantages of excellent hydrogen absorption and desorption performance and no kinetic attenuation and capacity loss in long-term cycle, and can realize large-capacity solid-state hydrogen storage. Long-distance transportation at room temperature and atmospheric pressure can not only reduce the storage and transportation cost and energy consumption of hydrogen, but also is safe and convenient. therefore, magnesium-based solid-state hydrogen storage materials are expected to be used as hydrogen sources for high-power fuel cells to replace the currently used high-pressure hydrogen cylinders. it can greatly improve the safety of mobile hydrogen source and reduce the cost of building high-pressure hydrogenation station.

Magnesium alloy powered automobile lightweight

The biggest advantages of magnesium auto parts are lightweight, safety and environmental protection. The large thin-walled magnesium alloy parts and dashboard frames of Zhejiang Wanfeng magnesium Redding New material Technology Co., Ltd. have been supplied in bulk in many new energy models such as Ulai. The application of forged magnesium alloy wheels in medium and high-end cars is beginning to emerge. The forged magnesium alloy wheels of Zhejiang Wanfeng Aowei Steam Turbine Co., Ltd. Dewei Technology Co., Ltd. are used in small-scale refitted vehicles, and are expected to be used in large quantities in the whole vehicle.

On March 8, 2021, Jiangsu Hengyi Auto parts Manufacturing Co., Ltd., a holding subsidiary of Huada Automotive Technology Co., Ltd., plans to establish a joint venture with Wujiang Xinshen Aluminum Technology Development Co., Ltd. to jointly invest in the construction of new energy vehicle battery tray high-performance magnesium alloy application and local production project in Zhongguancun Industrial Park, Liyang City, Jiangsu Province.

In August 2021, the magnesium alloy charger shell designed by Subaru Automobile Company and Wanfeng magnesium Reading is assembled from magnesium alloy castings, which reduces weight by 25% compared with aluminum castings. This is the first time that magnesium alloy materials have been used in car charger housings. It shows more potential of magnesium in the application of electric vehicles.

In September 2021, Qinghai Salt Lake Maverick magnesium Co., Ltd. customized the steering wheel for BYD. It is reported that the steering wheel uses magnesium once pressing molding technology.

It is reported that CITIC Daika Co., Ltd. is developing magnesium alloy wheels for General Motors brand Cadillac, which is also the first high-end customized mass-produced magnesium alloy wheels for the entire car factory market.

Magnesium alloy building formwork

The 13th five-year Plan of Building Energy Saving and Green Building Development issued by the Ministry of Housing and Construction points out that energy conservation, environmental protection, green and sustainable development have become the major trend of the construction industry. On the basis of maintaining the advantages of long service life and recyclability, magnesium alloy template has lighter weight and stronger alkali corrosion resistance. In recent years, magnesium alloy building formwork has been continuously developed under the promotion of related enterprises.

In August 2021, China's first magnesium alloy building formwork R & D center was jointly built by Beijing China Railway Construction Technology Co., Ltd., the National magnesium Alloy Materials Engineering and Technology Research Center, and Shaanxi Suide Zhenmeng magnesium Alloy Materials Co., Ltd.

On October 20, 2021, the magnesium alloy building formwork symposium was held at the branch of the 2021 National magnesium Industry Conference and the 24th Annual meeting of the magnesium Branch. Researchers from magnesium enterprises and related fields from all over the country discuss the urgent problems and difficulties encountered in the development of magnesium alloy building formwork, and jointly draw a good blueprint for development.

Magnesium alloy building formwork has the advantages of low density, high strength, large elastic modulus, good heat dissipation and strong alkali resistance, which is stronger than that of aluminum alloy building formwork commonly used in the market. However, magnesium alloy template also faces some technical bottlenecks in material activity, processing mode, surface treatment and elongation. In the future, magnesium alloy template should actively improve material improvement, increase elongation and reduce its damage rate, continuously improve die casting and extrusion process, further reduce processing cost, continuously improve surface treatment to improve the corrosion resistance and weather resistance of magnesium template. At the same time, it is necessary to strengthen cooperation with various industries to promote the formulation of industry standards for magnesium alloy building formwork; expand the scale of engineering practice, experience market inspection, and finally be recognized by the general contractor.

Magnesium secondary battery

In July 2021, Zhou Xinhong, associate professor of School of Chemistry, Qingdao University of Science and Technology, successfully designed and constructed a bismuth-based artificial interface protective layer on the surface of magnesium negative electrode, which not only effectively suppressed the harmful decomposition reaction of common magnesium electrolyte system on magnesium negative electrode, but also promoted uniform magnesium deposition behavior and inhibited the occurrence of short circuit in battery.

On October 28, 2021, the first symposium on magnesium battery and its key materials was held in Chongqing. The meeting discussed in depth the technical hotspots and difficulties of magnesium battery materials, expanded the application scope of magnesium in the field of energy storage, and looked forward to the bright prospect of the application of magnesium battery materials.

In November 2021, Wuxi Weifu Hi-Tech Group Co., Ltd. signed a Strategic Cooperation Agreement with Beijing hydrogen Pu Chuangneng Technology Co., Ltd. The two sides will jointly study the development and application of products such as bipolar plates (graphite / metal) and membrane electrodes, and jointly develop core technologies for key components of fuel cells.

Magnesium has extremely high volume capacity, so it is an excellent choice for the negative electrode of high volume energy density battery. In recent years, the developed recyclable magnesium secondary battery has great potential. the working principle of magnesium secondary battery is the same as that of lithium secondary battery, but magnesium secondary battery is safer than lithium secondary battery because magnesium and a considerable number of magnesium chemicals are non-toxic or low toxic. Magnesium is not as active as lithium and is easy to process and operate. Magnesium is also safer to be exposed to air than lithium. In terms of price, due to the higher abundance of magnesium in the earth's crust, the price of magnesium is 24 times cheaper than that of lithium, while China is rich in magnesium resources and the reserves rank first in the world. The development of magnesium batteries has unique advantages, and the research and development of magnesium as the negative electrode of magnesium secondary batteries is of great significance and broad prospects.

3. Jointly promote the green and low-carbon development of magnesium industry

In recent years, the original magnesium production enterprises in Shaanxi, Shanxi and other regions have built a unique magnesium industry innovation system by means of scientific and technological innovation, mode innovation, capital innovation and digital innovation, making full use of the advantages of resources and management.

Adjust the industrial structure and speed up the pace of innovation

The original magnesium enterprises have changed from small-scale and single variety to multi-field, multi-variety and high performance, speed up the transformation of innovation, and resolve the cost pressure of enterprises by increasing high value-added products. Downstream magnesium enterprises have begun to focus on their core main business, pay attention to the improvement of quality.

Green development of magnesium smelting Brooks no delay

The National Development and Reform Commission proposed to promote the carbon neutralization top-level design of the carbon peak, focusing on eight aspects of work: promoting the optimization and upgrading of the industrial structure, vigorously adjusting the energy structure, adhering to and improving the double control system of energy consumption, and paying close attention to energy conservation in key areas; step up efforts to tackle key scientific and technological problems, promote major breakthroughs in green and low-carbon technology, and improve the green and low-carbon policy system and market-oriented mechanism. Strengthen ecological protection and restoration, enhance the carbon sequestration capacity of the ecosystem, promote national conservation, create a new style of green and low-carbon life, and strengthen international exchanges and cooperation.

Fugu's magnesium industry not only provides a solid foundation for the sustained, healthy and steady development of the national magnesium industry, but also provides a solid foundation for the downstream market supply and application expansion of China's magnesium industry. Li Xingping, director of Fugu Industry and Trade Bureau, proposed that the high-end development of Fugu magnesium will be an overall strategic layout from short-term to long-term, and the next step will focus on "green, low-carbon, high-end".

Fugu is the first to build a new system for the development of magnesium industry.

Fugu County proposed that in view of the unique technical advantage of high temperature pyrolysis of magnesium smelting, Fugu will speed up the construction of a series of standard systems to provide standard support for the standardized development of magnesium industry, persist in increasing the total amount, create new clusters for the development of magnesium industry, formulate and introduce policies and measures for magnesium industry "excellent and strong", promote the release of high-quality magnesium production, and enhance the international popularity and market competitiveness of Fugu magnesium products. Adhere to incremental excellence, create a new pattern of magnesium industry development, build downstream industrial chains, enhance industrial value, adhere to quality improvement, create a new highland for the development of magnesium industry, will rely on magnesium industry service centers, magnesium R & D centers and other institutions, focus on the research and development of green magnesium smelting technology and high-purity magnesium products, and tackle common technical problems in the new magnesium alloy industry. Promote the integration of the two industries, create a new model for the development of the magnesium industry, promote the deep integration of the Internet and the magnesium real economy, promote the intelligent, information-based and high-end development of the magnesium industry, create an online trading platform for magnesium, and enhance the market.

Starting from Fugu, gradually promote the national magnesium industry to embark on the road of green and low carbon.

4. The magnesium industry shows a good momentum in the face of adversity.

In 2021, the realization of carbon peak carbon neutralization has been comprehensively promoted, and magnesium enterprises have experienced roller coaster price fluctuations. however, green environmental protection and sustainable development of magnesium applications have brought vitality to the magnesium industry. under this background, hydrogen energy shows a bright development prospect. Mg-based hydrogen storage battery may become a major trend in the future. Chongqing Merixin Technology Co., Ltd. will carry out long-term "production, learning and research" cooperation with the National magnesium Center of Chongqing University in the aspects of large-scale structural components, materials and structural functions of new energy vehicles. Baosteel Chaohu lightweight project invested by Baomak (Hefei) Technology Co., Ltd. has been successfully put into production, which has injected a strong driving force for the application of magnesium alloy in automobile lightweight. It can be seen that the application of magnesium in automobile lightweight is also expected to lead to the growth of magnesium demand. Although in the face of adversity, there are also many opportunities. The continuous expansion of the application of magnesium has boosted everyone's confidence. In the future, the development of the magnesium industry will show a scene of prosperity.