China’s magnesia enterprises in Liaoning province, a major production hub, get along with the comprehensive management, such as policies of environmental protection and government environmental inspection, as well as the outbreak of the coronavirus in recently, the whole industry and market continued to face challenges. It is the time to realise the important of how to revolution, changing of supply chain, from the biggest supplier only model transform to high-performance manufacturers.
Introduction
The 8th Liaoning International Magnesium Material Exposition, China (hereinafter referred to as "The 8th CLIMME") was founded in Shenyang, Liaoning Province, China since 2004, which has been held once every two years.
The past CLIMMEs have been a great success, and all the trade negotiations are actively. Cumulative exhibitors are more than 1600, which include more than 80 foreign well-known enterprises to participate in the exhibition. The visitors are nearly 150,000 including 60,000 professionals and more than thousands of foreign businessmen. The CLIMME has covered a wide range of activities, such as exhibitions, trade, technical seminars and talent exchange, which is the important magnesium materials exposition for worldwide professional research, business trade and science and technology exchange.
Key Points
Situation and Development of Magnesite Industry in Liaoning
Scenario Analysis of Magnesia Manufacturing and Pollutions
Magnesia and Refractory
Transformation of China’s Refractory
Scenario Analysis of Steel Industry
Magnesium Materials for Building Industry
Situation and Development of Magnesium Industry in Liaoning
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.
The magnesium refractory products from Liaoning province, China, cover almost 90% domestic market share and 60% international market share. 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. Qualified magnesium companies in Liaoning Province, only take 23.4% in total, almost 400 companies.
Most of them produce CCM, DBM, mid-grade magnesia, high pure magnesia, FM, dolomite magnesia, magnesia-synthetic, magnesia-carbon brick, magnesia-calcium brick, magnesia-alumina spinel brick, other kinds of magnesia composite materials, and refractories, which mainly be applied for high temperature industry, such as steel, cement, nonferrous metallurgy, and glass, etc.
In Liaoning, most magnesium minerals and materials are used to make refractories, magnesium chemical materials, building materials and magnesium functional materials, etc.
Scenario Analysis of Manufactory and Pollutions
The Caustic Calcined Magnesite is made between 700℃ to 1000℃ from nature magnesite through calcining in reverberatory furnace, rotary furnace and boiling furnace. The Dead Burned Magnesia is made between 1500℃ to 1800℃ and the Fused Magnesia is made between 2500℃ to 3000℃. Tunnel Kiln can be used to make MgO-based bricks. From 2020, energy consumption per unit of industrial added value will be reduced by 18%.
Reform the foundation of industry to build high performing processing and increase the quality of products, which needs energy-saving and environmental friendly technology and equipment.
Most old facilities and equipment will be replaced by high performance equipment and automatic systems.
Transformation of China’s Refractories
Scenario Analysis of China’s Steel Industry
In 2018, according to the data from central government, the crude steel production was 928.26 million tonnes (Mt), a 6.6% increase compared to 2017, steel materials production was 1105.52 Mt, up 8.5% on 2017. In total revenue was RMB 7.65 trillion，a increase of 13.8% over the same period of 2017, and the profit was RMB 470.4 billion, raising 39.3%.
Announcement on Nov 2015 showed the strategy of steel supply in China should be reformed, the old processing facilities must be replaced and the locations of steel distribution will move to southeast coast areas.
China’s Magnesium Materials for Building Industry
Professor Wanli Bi, from Liaoning University of Science and Technology, think the future development of magnesium materials for building industry should focus on light, high performance and multi-functional to meet the needs of modern requirement.
There are a lot of low-grade magnesite resources in China, and the transform or upgrade of the materials should take the fully advantage of them, which will require first-class processing for low-grade resources to get high performance products and build up a new emerging industry.
So far, in Liaoning, China, the reserves of low-grade magnesite with 35-43% MgO is nearly several billion tons. If not be used properly, the resources may be wasted and it may pollute environment.
In China, there are more than 100 types of magnesium materials for building industry, and more than 3000 production enterprises. The in total annual output value is about RMB 102 billion that included magnesium raw materials, products and equipment, etc.
Magnesium cementitious materials are mainly divided into magnesium oxychloride cement (MOC), magnesium oxysulfate cement (MOS), magnesium phosphate cement (MPC) and hydrated magnesium silicate cement (MSH), which are distribute in Liaoning, Hebei, Tianjin, Shandong, Jiangsu, Hunan, Xinjiang and Qinghai province.
Outlook
High performance and quality products will be the future, and we need think about how to strategically development the whole industry to achieve sustainable development. Start from positioning identification can help improved magnesium cementitious materials to meet the changing needs of building industry, and developed to high-tech and high quality products.
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Current Situation Updated of China’s Refractory Industry
The percentage of qualified magnesium companies in Liaoning Province increase by 6.9% in 2019, the total profit is RMB 6.20 trillion, a 3.3% decrease compared to 2018.
According to the data of China refractory association, in 2019, the production of refractories is 24.31 million tons, an increase of 3.65% compared to 2018. The total import value amount of refractory raw material is USD 0.37 billion, up by 33.57% in 2019, and export is USD 3.52 billion, a 15.46% decrease compared to 2018.
Replus Business View
The COVID-19 impact continues in China, although there are 80% workers returning to their operations after the ease of lockdown in Liaoning province, but the total capacity utilization is less than 50%.
The COVID-19 pandemic will affect the market trends and make the situation of downstream industry complicatedly, especially for automotive industry, construction machinery industry and construction industry. Although the central government will provide some supports to help the recovery of economy, the evaluated production of crude steel will not increase in 2020.
Besides, because of the decreasing profit, some steel companies may close down, and the price of refractory materials may be reduced under the pressure of economic downturn.
The second, because of the overcapacity since last year, the limited market demand will cause the further decline in the price of China's refractory materials.
Furthermore, after the ease of COVID-19 lockdown, China makes further more efforts in strictly conducting environmental supervision and continues to restructure industries. There are many steel companies required to replace processing facilities and equipment following the rules of “Steel Industry Regulations, 2015 version”.
According to the updated news from local government and Ministry of Industry and Information Technology, at present, 76 steel companies will carry out equipment replacement projects, and the proposed steel projects will bring in 200 million tons of crude steel output, which is undoubtedly a raising demand for refractory materials.
Meanwhile, the refractory materials for electric furnaces will be required more in 2020. In China, the production of steel from electric furnaces is increasing.
At the end of June 2019, there are 275 electric arc furnace (EAF) in China, the total annual capacity is about 165 million tons. There are extra 21.01 million tons has been planned to add on the top of annual capacity, and 6.42 million tons are completed and 14,59 million tons have not yet.
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