Asian Metal visits Fugu Wanxin

On the morning of December 26th, 2025, Ms. Daphne Zhang, the Consultant & Senior Product Manager of Asian Metal, visited Fugu Wanxin Coal Electricity and Chemical Co., Ltd. and discussed with the Deputy General Manager, Mr. Baobao Quan for the current "cost dilemma" faced by Shaanxi magnesium plants—the inverted price of semi-coke, a key raw material, stands in stark contrast to the persistently low and fluctuating magnesium prices, profoundly revealing the profit squeeze and structural vulnerability in the upstream smelting segment. Entering 2026, the widening price gap between magnesium and aluminum will translate into strong economic momentum, fueling explosive growth in the magnesium die-casting industry. This industrial wave, ignited by the "price gap dividend," goes far beyond mere substitution; it represents a profound "lightweight revolution." With its excellent strength-to-weight ratio and vibration-damping properties, magnesium alloys are expanding from traditional component applications to new fields such as large integrated die-casting structural parts for new energy vehicles and high-end consumer electronics. This shift is elevating lightweighting from a singular goal of "weight reduction" to a systematic value innovation that enhances product performance, range, and design aesthetics. The cost pressures upstream are, in fact, accelerating the reshaping of the downstream industry chain and the value reassessment of magnesium as a strategic material.Adhering to market-oriented, entity-based operations, and industrial diversification, Fugu Wanxin Coal, Electricity, and Chemical Co., Ltd. invested 490 million yuan to build a 1.2 million-ton coal washing plant, a 900,000-ton semi-coke plant, and a 20,000-ton annual metal magnesium facility in the Dingjiahuopan Industrial Concentration Zone of Laogaochuan, Fugu. Following the development philosophy of "transformation, optimization, upgrading, and innovation," the park focuses on constructing circular economy industrial chains such as "raw coal - semi-coke - tar - gas" and "semi-coke - metal magnesium," aiming to achieve energy conservation, emission reduction, and comprehensive resource utilization.

Fugu Wanxin has long relied on Asian Metal’s price information as a reference for supply and sales pricing, highly commending its timely, rigorous, and objective market reporting. The company also recognizes Asian Metal’s previous Magnesium Industry Summits and will actively participate in the 14th Magnesium Summit to be held in Chengdu on April 16-17th, 2026.