Magnesium Derivative Sector Needs Reformation

Magnesium derivatives include magnesium oxide, magnesium
carbonate, magnesium hydroxide, magnesium sulfate, etc. There
are nearly 40 varieties. If different specifications are also
considered, there are more than a hundred varieties. The market
demand of refined magnesium products such as magnesium oxide,
active magnesium oxide, magnesium hydroxide and flame-retarding
magnesium hydroxide is quite large whereas the market demand of
conventional magnesium products is relatively small.

Magnesium oxide:
great deficit of high-grade products

Magnesium oxide product series include industrial-grade variety
(light variety), active variety, electric-grade variety,
calcined variety, magnetic variety, heavy variety,
medical-grade variety, reagent-grade variety and high-purity
variety. Light magnesium oxide, active magnesium oxide and
high-purity magnesium oxide have extensive applications in the
chemical sector. The demand of active magnesium oxide in
adhesives and sealing materials that have developed rapidly in
recent years has increased constantly. The demand of magnesium
oxide in the oil sector also keeps increasing. For example,
low-grade magnesium oxide is needed as drilling mud additive in
oil recovery and special magnesium oxide is needed as catalyst
and desulfurizing agent in oil refining.
   Light magnesium oxide is mainly used as rubber accelerator
and filler, pharmaceutical, fertilizer, high-grade
heat-insulation material, food/feed additive, magnesium-based
lube oil, boiler additive and water treatment agent. The
capacity of light magnesium oxide in China is around 15 thousand
t/a today. There are more than 30 producers mainly distributed
in Northeast China, Shandong province and North China. Producers
have relatively small scale. Except Shanghai Dunhuang Chemical
Plant, Neiqiu Magnesium Products Co., Ltd. and Shanxi Heshun
Yinhai Magnesium Industry Co., Ltd. that have a capacity of over
500 t/a, the capacity in other producers is around 300 t/a.
   Active magnesium oxide is an ideal curing (cross-linking)
agent, acid absorbent and accelerator for chloroprene rubber,
halogenated isobutadiene-isoprene rubber and fluorine rubber
and can also be used as filler for adhesives, paints and paper.
The output of active magnesium oxide can not meet the market
demand and import has to be made.
   Electric-grade magnesium oxide is an insulation filler used
in the manufacturing of electric-heating pipes. With the
extensive application of electric-heating products, the demand
of electric-grade magnesium oxide will go up. The demand of
electric-grade magnesium oxide in China is around 35 thousand
tons a year. The capacity in Shanghai Zhentai Industrial Co.,
Ltd. is around 10 thousand t/a and the total capacity in other
200 small producers is around 15 thousand t/a. There is a deficit
of 10 thousand tons and import has to be made from the United
States and Japan.
   The constant development of new uses has resulted in the
expansion of application sectors. The demand of magnesium oxide
has therefore increased constantly. There has been a supply
deficit and a rising price in recent years. The price today has
reached RMB10 000 - 12 000 per ton for conventional
superior-grade variety, RMB8 000 - 9 000 per ton for Class 1
variety, RMB12 000 - 18 000 per ton for active variety, over RMB20
000 per ton for special variety and RMB27 000 - 28 000 per ton
for silicon steel grade variety.

Light magnesium carbonate:
low product grade

Light magnesium carbonate is used in great quantities in the
production of industrial-grade magnesium oxide and special
magnesium oxide. It is an excellent filler and intensifier for
rubber products. It can be used as refractory material with heat
insulation and high-temperature resistance. It can also be used
in the production of glass products, pigments, paints and
daily-used chemicals. The consumption of light magnesium
carbonate in China has a narrow coverage and is still at the
development stage. More than 20 producers of magnesium
derivatives in China produce light magnesium carbonate. The
total capacity is 20 thousand t/a and mainly distributed in Hebei
province, Shanxi province, Liaoning province, Hunan province,
Sichuan province, Gansu province and Inner Mongolia. Dandong
Yulong Magnesium Industry Co., Ltd., Hebei Xingtai Mining (Group)
Co., Ltd. Magnesium Salt Chemical Plant, Hebei Mianhe Magnesium
Salt Chemical Co., Ltd. and Shijiazhuang Jinmei Chemical Co.,
Ltd. are major producers in China and their capacity has reached
2 thousand t/a. Other producers are relatively small and their
capacity is less than 1 thousand t/a. The production equipment
is outdated and the energy consumption is high. It is therefore
imperative to make an upgrading of equipment and technology.
   As light magnesium carbonate in China has a low product grade,
there are few specialty and functional varieties and the price
of imported products is much higher than the export price.

Magnesium hydroxide:
new inorganic flame-retarding agent

The capacity of magnesium hydroxide in China is around 30
thousand t/a today. Major producers are distributed in Liaoning,
Shandong, Hebei and Qinghai provinces. The capacity using
brucite as raw materials accounts for more than 50% of the total.
There are also problems such as small scale, outdated equipment
and unstable product quality in producers.
   Magnesium hydroxide mainly has two applications. One is the
use as neutralizing agent in the treatment of waste gases/waste
water containing acids and the treatment of waste liquids
containing heavy metals and organics. The other is the use as
flame-retarding agent in polymer fillers. Magnesium hydroxide
is a new inorganic flame-retarding agent. Compared with aluminum
hydroxide flame-retarding agent in popular use in China, it has
the advantages of no decomposition at high temperatures, no
generation of corrosive gases, strong smoke inhibiting power,
long-lasting effect and low price. The demand of inorganic
flame-retarding agents in China reached around 60 thousand tons
in 2005, the output was less than 30 thousand tons and there was
a considerable supply deficit in market.

Magnesium sulfate:
great market demand as fertilizer

China has around 30 magnesium sulfate producers with a total
capacity of around 2.6 million t/a. The export amount of
magnesium sulfate accounts for 50% - 60% of the total output.
The price of industrial-grade variety is around RMB500 per ton
and the price of fertilizer-grade variety is around RMB400 per
ton.
    With the growing awareness in the effect of nutritious
elements such as magnesium and sulfur on the output increase and
the quality improvement of farm crops, both the production and
the application of magnesium sulfate as fertilizer have improved
considerably in China in recent years. According to experts,
besides meeting the demand in food, pharmaceutical, chemical,
light industry, textile and daily-use chemical sectors and the
export, magnesium sulfate also has a huge potential market in
the fertilizer sector and the demand has presented a trend of
constant increase.

Table 1  Import and Export of Light Magnesium Carbonate
                       in