山西镁产业调研报告

Report Summary 1. Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - China is a major producer of primary magnesium, with its production capacity accounting for about 85% of the global total. Shanxi Province holds a significant advantage in the magnesium industry due to its abundant resource reserves, complete industrial chain, and strong technological innovation capabilities [3]. - The magnesium - to - aluminum price ratio has dropped to 0.7 times, highlighting the cost - effectiveness of magnesium. However, the downstream application of magnesium has not yet been fully launched. The demand for magnesium is expected to gradually increase with the growth of the market for lightweight automobiles, two - wheeled electric vehicles, and new energy vehicles [4]. - Shanxi magnesium enterprises face intensified industry competition, especially from the acceleration of central and state - owned enterprises' entry into the market [4]. - Most Shanxi magnesium enterprises have an open attitude towards futures tools and will gradually strengthen their futures - related team building and the application of these tools after the listing of magnesium futures [4]. 3. Summary by Company Company A - Enterprise Situation: Privatized in 2001 and reorganized in 2015. It has an annual production capacity of 65,000 tons of primary magnesium, 30,000 tons of magnesium alloy, and 50,000 tons of deep - processed magnesium products, with 10 production lines for deep - processed products. It has its own mine with a reserve of 2 - 3 million tons per year. Its annual revenue from the magnesium industry is less than 1.5 billion yuan, and the annual R & D investment is about 40 million yuan [5]. - Business Model: The domestic mainstream magnesium smelting process is the Pidgeon process. Different from the production in Yulin, Shaanxi, which uses coke oven gas, this enterprise has been focusing on deep - processing since 2020 and has a large environmental protection investment. The pricing model varies, with different payment terms for different customers. Overseas sales account for 10% of the total [6]. - Production Profit: In 2025, the sales revenue of magnesium alloy was less than 1.5 billion yuan, and that of the deep - processing sector was more than 200 million yuan. The gross profit rate of deep - processed products varies, with military products at 40 - 50%, general products at 15 - 20%, and magnesium alloy products at 20% [7]. - Future Plan: Focus on increasing the deep - processing capacity and market development, especially for high - end products such as magnesium alloy automobile wheels. Continuously invest in the green transformation of smelting technology. Be cautious about entering the automotive industry [8]. - Futures Participation: Willing to participate in the futures market after the listing of magnesium futures [9]. Company B - Enterprise Situation: Mainly engaged in primary magnesium, extrusion, and control processes. It has an annual production capacity of 50,000 tons of primary magnesium (40,000 tons at full capacity), 30,000 - 50,000 tons of magnesium alloy, and 50,000 tons of precision die - castings. It has a complete industrial chain from dolomite mining to deep - processing of magnesium alloy. Its subsidiary new materials company plans to go public in the future [10]. - Cost and Price: The break - even point of the comprehensive cost of magnesium ingots in the industry is about 17,500 yuan/ton, and the current magnesium price is around 16,500 yuan/ton. The magnesium - to - aluminum ratio has dropped to 0.7, but the downstream application has not increased [11]. - Downstream Application and Customers: The utilization rate of the production capacity for two - wheeled electric vehicles is 50 - 60% due to the new national standard. The development of magnesium alloy in the automotive industry is slow. There is cooperation with Huawei and SAIC, and there is demand in the aerospace and satellite Internet fields [12]. - Future Plan: Plan to expand the primary magnesium production capacity by 50,000 tons after obtaining energy consumption and carbon emission indicators. Aim to increase the local magnesium production capacity from 42% to 50 - 60% of the national total and build a magnesium industrial cluster [13]. - Futures Participation: Will train professional futures talents to hedge price risks if magnesium futures are listed [14]. Company C - Enterprise Situation: Its market share of magnesium alloy ranks among the top three globally. It has a production capacity of 30,000 tons of primary magnesium, 60,000 tons of magnesium alloy (actual output of 40,000 tons), 6,000 tons of magnesium anodes, and 15,000 tons of magnesium powder. It has a large investment in high - pressure magnesium die - casting [15]. - Cost and Raw Material Procurement: It has a short - to - medium - term irreversible disadvantage in energy and environmental protection operation costs compared with northern Shaanxi. It locks in part of the silicon - iron procurement volume at the long - term average price and replenishes the insufficient supply of primary magnesium through waste recycling [16]. - Downstream Application and Customers: Automobile parts account for 70 - 80% of the demand for magnesium materials. It is also involved in two - wheeled vehicles, stage supports, household items, 3C products, and medical parts. The domestic demand for magnesium alloy is expected to reach 2 - 3 million tons in 3 - 5 years [17]. - Future Plan: Interested in accessing the capital market but has no clear listing plan [18]. - Futures Participation: Will consider using futures for hedging if the problems of small industry scale and product preservation are solved [19]. Company D - Enterprise Situation: Listed in 2020, it covers multiple industries such as smart home, new energy vehicles, industrial equipment, and power components. Its subsidiary has an annual production capacity of 30,000 tons of various parts and an annual sales revenue of 1.2 billion yuan, and it has a 5G + industrial Internet platform [20]. - Downstream Application and Customers: Its customers are mainly in the new energy vehicle, industrial robot, and aero - engine fields. Its aluminum alloy products are mainly for military enterprises. The difficulty of obtaining automobile orders has decreased compared to three years ago [21]. - Future Plan: Plan to build a global - scale industrial base for smart home, new energy vehicle, and industrial equipment parts, with an investment of 150 million yuan in 2026 and 300 million yuan in 2027. Also, invest more in military products and is involved in the commercial aerospace field [22]. - Futures Participation: Has previously contacted the futures market in pig iron smelting but did not participate due to its small scale [23].