Asian Metal visits Jinchuan Hongtai Magnesium Alloy

On the morning of December 26th, 2025, Ms. Daphne Zhang, the Consultant & Senior Product Manager of Asian Metal, visited Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. and discussed with the Vice Chairman, Mr. Baolin Wang, for the challenges faced by Shaanxi magnesium enterprises and potential breakthrough strategies. The "cost inversion" issue for Shaanxi magnesium plants is a concentrated reflection of imbalanced value distribution within the industrial chain. The key to breaking this deadlock lies in proactively climbing the value chain through "industrial upgrading and vertical extension," transforming from a primary raw material supplier into a high-end material solution provider. Specifically, magnesium alloys are the key form for achieving lightweight and performance upgrades in end products, thereby securing reasonable premiums. Meanwhile, magnesium alloy particles serve as the "industrial seasoning" for entering vast new markets such as 3C electronics and robotics. These two aspects complement each other, jointly driving the transition of magnesium from a bulk commodity to customized, high-performance engineering materials. Ultimately, this will reshape profit distribution rights in the deep processing segment and build enduring competitive advantages centered on technological patents and solutions.

Fugu Jinchuan Hongtai Magnesium Alloy Co., Ltd. is located in Changfangliang Village, Laogaochuan Town. With a total investment of 420 million yuan, the company has built metal magnesium workshops equipped with gas production sections, a 110 kV substation, a ferrosilicon workshop, and a 2*6 MW waste heat power generation plant. Its 1-million-ton modified magnesium slag grinding station is in the planning stage. The company produces 20,000 tons of metal magnesium, 600,000 tons of semi-coke, 45,000 tons of tar, operates two 25,000 kVA submerged arc furnaces for ferrosilicon, and generates 82.08 million kWh of waste heat power annually. In March 2019, Shaanxi Hongtai Yuanhe Magnesium Industry Co., Ltd. was established, planning to build a production line for 50,000 tons of deep-processed magnesium alloy products annually. This involves transforming primary magnesium into mature magnesium alloy products through alloying, high-pressure forming, precision processing, and surface treatment technologies. Currently, the company produces 20,000 tons of magnesium alloys and magnesium rods annually. Other products include magnesium alloy safety helmets, magnesium alloy automotive engine valve covers, magnesium alloy automotive oil pans, new energy vehicle transmission housings, new energy vehicle power motor housings, electric vehicle wheel hubs, and electrical integration boxes. With a planned total investment of 80 million yuan, 50 million yuan has already been invested, establishing three die-casting production lines, one mechanical processing line, one micro-arc oxidation line, one impregnation line, and one electrostatic spraying line. The company now has the production capacity to manufacture 1.5 million magnesium alloy safety helmets, 1.3 million electric vehicle safety helmets, and 1.5 million automotive engine components annually.

Jinchuan Hongtai has long relied on Asian Metal's price information as a reference for its purchasing and sales pricing, speaking highly of its timely, rigorous, and objective market reports. At the same time, the company recognizes Asian Metal’s previous magnesium industry summits and will actively participate in the 14th Magnesium Summit organized by Asian Metal in Chengdu on April 16–17th, 2026.