BAOWU MAGNESIUM(SZ:002182)2024-12-04 10:08Group 1: Industry Overview - China is a major producer of primary magnesium, accounting for 83% of global production [1] - Domestic primary magnesium production from January to September 2024 is approximately 702,900 tons, a year-on-year increase of about 17.8% [1] - Exports of various magnesium products from January to August 2024 reached 307,400 tons, reflecting a year-on-year growth of 13.73% [1] Group 2: Production Process and Technology - Magnesium content in magnesium alloys typically exceeds 90% [1] - The company utilizes the "Pijang Method" for magnesium production, which involves the thermal reduction of magnesium oxide using ferrosilicon, leading to increased efficiency and reduced production cycles [1][2] - The company is integrating intelligent steelmaking technologies into magnesium production to enhance automation [2] Group 3: Cost Structure - The production cost of primary magnesium is relatively low due to lower energy costs, with significant cost impacts from ferrosilicon and coal prices [2] - Producing one ton of primary magnesium requires one ton of ferrosilicon and three tons of coal, positioning the company at a leading level in the industry [2] Group 4: Manufacturing Capabilities - The company operates magnesium alloy die-casting factories in Nanjing, Chao Lake, Chongqing, Jingzhou, and Tianjin, providing comprehensive lightweight solutions [2] - It has over 200 die-casting units and nearly 1,000 processing centers, with capabilities for surface treatment and custom mold design [2]