Asian Metal visits Fugu Yabo

On the morning of December 24th, 2025, Ms. Daphne Zhang, Consultant & Senior Product Manager of Magnesium Market at Asian Metal, visited Fugu Yabo Semi-coke Magnesium Electricity Co., Ltd., holding discussions with Mr. Sanfei Yuan, Executive Deputy General Manager, on the global supply landscape of the magnesium industry in 2025 and domestic and overseas demand trends. Since the fourth quarter, magnesium prices have come under pressure amid increased primary magnesium supply and weak market demand. During this period, most magnesium producers faced sluggish sales and continued price declines of semi-coke due to persistently high coal prices, resulting in widespread margin inversion and mounting losses. Some plants considered output cuts to respond to market conditions, while others proactively built inventories to reduce spot circulation. Looking ahead to 2026, the implementation of the “plastic restriction order” for two-wheel vehicles is expected to significantly boost magnesium alloy consumption. Combined with the widening magnesium–aluminum price spread and the continued advancement of the “magnesium replacing aluminum” concept, as well as the progress in lightweight magnesium alloy applications, magnesium producers are increasingly confident about opening up new application scenarios and achieving incremental demand growth.

Fugu Yabo Semi-coke Magnesium Electricity Co., Ltd. is located in the Bandun Industrial Cluster, Laogaowan Town, Fugu County. With approval from the Development and Reform Commission, the company has built a semi-coke production capacity of 980,000 tpy, supported by a 1.2 million tpy raw coal washing facility, 30,000 tpy of activated carbon, 20,000 tpy of primary magnesium, 370,000 tpy of non-fired bricks, two 15 MW (air-cooled) captive power units utilizing coke oven gas and waste heat from ferrosilicon off-gas, and two 25,000 kVA ferrosilicon electric furnaces.

Yabo has long followed Asian Metal and uses its price information as a benchmark for procurement and sales. The company highly values Asian Metal’s timely, rigorous, and objective market reporting, recognizes the Asian Metal Magnesium Summits, and will actively participate in the 14th International Magnesium Summit to be held by Asian Metal in Chengdu, China on April 16-17th, 2026.