What is the Confusion In the Magnesium Industry in China?>

Although the attention of all parties to magnesium materials has increased, but calm analysis, there are two major phenomena in the application of magnesium in recent years that have puzzled the magnesium industry.

One is the weak growth of magnesium consumption outside China. According to analysis, from 2010 to 2012, magnesium consumption in regions other than China hovered around 500,000 tons, and even declined in 2012. The growth of the global magnesium market mainly depends on China. The export volume of China's magnesium products also showed a decline. Second, the growth of global magnesium alloy consumption is sluggish. In 2012, the global magnesium alloy consumption was about 255kt, accounting for 34.45% of the consumption. The highest value in 2007 was 360kt. In 2012, China's magnesium alloy consumption was about 80kt, accounting for 31% of the consumption. In 2007 it was 92kt. The growth of magnesium consumption in recent years mainly comes from aluminum, titanium and steel. In the end consumer market where we have high expectations, the demand for magnesium alloy die castings and magnesium alloy processing materials has not changed significantly. This market desperately needs a positive push.

The development and application of magnesium products face two constraints. One is technology and engineering. The core is how to develop more high-performance new alloy materials and how to improve processing technology by making use of strengths and circumventing weaknesses. The second is the problem of strategy and management, how to speed up the industrialization process of magnesium alloy and expand its application through resource integration. He believes that the primary obstacle to the promotion and application of China's magnesium alloy industry is strategy and management rather than technology and engineering.

At the government level, the national strategy and industry planning of the magnesium industry are lacking, and the important position of magnesium has not been examined from the perspective of national resources and energy strategy and international competition. The research and development of magnesium alloys and their products lacks systematic planning, insufficient investment in research and development, and limited coverage of research and development.

At the industry level, the R&D and industrialization promotion of magnesium lacks effective coordination and organization, lacks industry alliances, imperfect industry standards, lacks a multi-level and high-level industry service platform, lacks leading figures and leading enterprises in the industry, and cannot timely and effectively Make the voice of the industry.

At the enterprise level, magnesium production enterprises generally lack strength, the resources they can control are very limited, the business model needs to be optimized, most of the enterprises engaged in the real economy are struggling, it is difficult to have a long-term vision and advanced layout, and there is a general lack of professional talents in enterprises.

At the scientific research level, although there are many scientific research institutes and colleges and universities engaged in magnesium research in China, the research funding for magnesium is still insufficient. Although scientific research achievements have been awarded continuously, in fact, the transformation of achievements is not effective, and the integration with industrialization is not closely. Insufficient scientific and technological cooperation, scattered research forces, waste of resources, and no sharing mechanism for state-supported scientific and technological achievements has been established.

At the user level, there is insufficient awareness of magnesium, and there are still doubts about the stability of magnesium supply. Manufacturing enterprises lack the motivation and pressure to innovate. They are accustomed to being OEMs for foreign companies, or OEMs, blindly seeking low costs and making quick money, but not enough willingness to use material innovation as a breakthrough to achieve product innovation . At the same time, due to the lack of systematic life cycle analysis research and material database support for magnesium applications, product design and development progress is not ideal.

In terms of financial investment, the vast majority of investors and investment and financing institutions prefer the icing on the cake, rather than the help. I have not yet seen the investment value of magnesium materials and magnesium industry, and lack more patience and more attention in terms of capital investment and resource integration in magnesium industry.