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Resumen de Costs and corruption hinder Liaoning magnesia

Albert Li

  • These two regions are home to nearly 100 magnesite mining companies and 500 businesses involved in the magnesium supply chain. Collectively, they produce 5m tpa caustic calcined magnesia (CCM), 3m tpa deadburned magnesia (DBM) and 2m tpa fused magnesia (FM).

    Dashiqiao-based Hongyu Refractories Co., one of Liaoning's largest refractory magnesia exporters, expects export prices for magnesia may rise by up to $20/tonne over the next few months owing to a sharp rise in the cost of coal, used to fuel furnaces and kilns at processing plants. Coal prices have been increasing since the middle of this year, when the Chinese government imposed a 276-day working limit on mines in order to reduce oversupply.

    In line with the Chinese government's industrial development policy, fewer and fewer companies are exporting raw magnesia with most now shipping higher margin finished and semi-finished refractory products instead. Qinghua Group, the biggest magnesia company in China, which used to export magnesia now consumes all of its raw material internally to produce refractories, most of which is shipped abroad.


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