2019 Analysis of magnesium materials industry in Liaoning China

Replus Business (UK) Limited


Magnesite

According to the survey of USGS, the estimated reserves of magnesite in China is more than 1 billion tonnes in 2019. Total annual production of magnesite, in 2018, is about 19 million tonnes. The production of caustic calcined magnesia (CCM), dead burned magnesia (DBM) and fused magnesia (FM) are 5 million tonnes, 5 million tonnes and 2 million tonnes specifically.


World magnesite reserves is 8.5bn. tons in 2019

Data Source: USGS 2019


World magnesite production is 29m. tons in 2018

Data Source: USGS 2019


There are 27 mining areas distributed in 9 provinces of China. Liaoning province is the main storage site for magnesite, which has advantages of high grade, shallow bury and easy open mining. In Liaoning province, the reserves are distributed in Haicheng, Dashiqiao, Xiuyan, Fengcheng, Kuandian, Fushun and Liaoyang, etc.


Distribution of magnesite resources in China (million tonnes)

Data Source: Liaoning special resources industry development centre


According to the survey of Liaoning special resources industry development centre, magnesite estimated reserves in Liaoning province is about 3100 million tonnes, which accounts for over 85.8% of China's reserves and about 20% of the world's reserves. Moreover, the magnesite reserves in Anshan accounted for over 86.3% of the Liaoning province, and the reserves in Haicheng occupied for more than 70% of Anshan.


The production of magnesium refractory materials in Liaoning occupy 90% of national total output and take up to 60% of international total output. From Anshan to Yingkou, there are 65 mining areas, which include 11 large-scale mining areas owning more than 91% of estimated reserves. Around those regions also have 91 production mines, the annual production is about 15.59 million tons, which include 7 large-scale mines accounting for more than 50% of total production.


In Liaoning, there are nearly 500 enterprises producing and processing of magnesium materials, which include more than 3500 different kinds of kilns using to processed raw materials and refractory products, the annual output is around 20 million tons.


Magnesium refractory industry in Liaoning Province

Magnesium refractory materials are very important for high temperature industry, which are widely used in high temperature industry such as steel, nonferrous, building materials, glass, chemical industry and environmental protection.


In the recent years, because of the concept of low-carbon, low energy consumption, environmental protection and creative application, magnesium refractory industry has to transformation. All the business must seek the new and innovative ways to meet the needs of technical innovation and environmental protection.


Liaoning province will transform from a largest production of refractory materials to a strong supply chain province with latest technology, systematization and high-quality products, in order to develop the refractory industry creatively.


The main application for magnesium minerals is to produce magnesium refractories, which take up to 90% of total application in China. There are more than 400 magnesia relevant enterprises in Liaoning Province, which mainly produce light burned magnesia powder, caustic calcined magnesia (CCM), dead burned magnesia (DBM), fused magnesia (FM), medium grade magnesia, high-purity magnesia, dolomite, magnesia synthetic sand, magnesia carbon brick, magnesia calcium brick, magnesia alumina spinel brick, other kinds of magnesia composite materials, and amorphous refractories. The products are usually used in steel, cement, non-ferrous metallurgy, glass and other high temperature industries.


In Liaoning province, there are more than 4000 sets of production equipment and facilities to processing various kinds of magnesium materials, the yearly capacity is more than 28 million tons. However, the capacity utilisation rate of the equipment in Liaoning province is less than 50%, and with the problem of overcapacity, especially for refractory industry.


Furthermore, because of the increasing price and profit forced, more and more capital invested in magnesium industry, which caused more and more new projects for fused magnesia (FM) and raising output of magnesia. The results are repeated construction of facilities, limited profit and lower price with high stock.


The current situation of the whole refractory industry in Liaoning province is messed without order. For the change of policy and environment, most enterprises are still in the process of exploration and planning. Even though some large-scale production enterprises began to replace production and processing facilities such as kilns a few years ago, they are still a long way from systematic transformation.


The market trend and benchmark of magnesium materials are depending on the change of refractory industry. The refractory in China, especially for magnesium refractories, is changing, because of the environmental protection. The total output is decreasing, but they try to maintain a certain scale of production, such as Liaoning province will keep the production of magnesite around 12-14 million tons yearly, magnesium refra