High

Performing Manufactory
Review: The 8th Liaoning (Anshan, Haicheng)
Interna@onal Magnesium Material (Talc) Exposi@on

Key Points
 Key Points
China’s magnesia enterprises in Liaoning province, a major produc@on hub, get along with the comprehensive
management, such as policies of environmental protec@on and government environmental inspec@on, as well
as the outbreak of the coronavirus in recently, the whole industry and market con@nued to face challenges.
It is the @me to realise the important of how to revolu@on, changing of supply chain, from the biggest supplier
only model transform to high performing manufactory and supply and demand integra@on.
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•  Situa&on and Development of Magnesium Industry in Liaoning

•  Scenario Analysis of Manufactory and Pollu&ons
•  Magnesia and Refractories
•  Transforma&on of China’s Refractory
•  Scenario Analysis of China’s Steel Industry
•  China’s Magnesium Materials for Building Industry
 Welcome to Haicheng Anshan China

The 8th Liaoning Interna@onal Magnesium Material Exposi@on, China (hereinaNer referred to as "The 8th
CLIMME") was founded in Shenyang, Liaoning Province, China since 2004, which has been held once every
two years. The past CLIMMEs have been a great success, and all the trade nego@a@ons are ac@vely.

Cumula@ve exhibitors are more than 1600, which include more than 80 foreign well-known enterprises to
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par@cipate in the exhibi@on. The visitors are nearly 150,000 including 60,000 professionals and more than
thousands of foreign businessmen. The CLIMME has covered a wide range of ac@vi@es, such as exhibi@ons,
trade, technical seminars and talent exchange, which is the important magnesium materials exposi@on for
worldwide professional research, business trade and science and technology exchange.
 Welcome to Haicheng Anshan China

Organising Units: Supporters:

•  Liaoning Province Na@onal New Raw Material Base •  China non-metallic mineral industry Associa@on
Construc@on Engineering Centre •  China magnesite Industry Associa@on
•  Liaoning Special Resources Industry Development •  China Nonferrous Metals Associa@on
Centre •  China Inorganic Salt Industry Associa@on
•  Anshan Municipal People's Government
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PPT •  China Chemical Society inorganic acid and alkali Salt
•  China Refractories Industry Associa@on Professional Commi]ee
•  China Minmetals Chemical Import and Export Associa@on
Suppor&ng Units: •  Liaoning University of Science and Technology
•  Liaoning Province Industry and Informa@on Technology •  Shenyang University of Technology
Department •  Shenyang Chemical University
•  Henan refractory industry associa@ons
Organisers: •  Shandong Refractory Industry Associa@on
•  Haicheng Municipal Commi]ee •  Zhejiang Refractory Industry Associa@on
•  Haicheng People's Government •  Shanxi Refractory Industry Associa@on
•  Liaoning Nonmetallic Mine Industry Associa@o •  Guizhou Refractory Industry Associa@on
•  Hebei Refractory Industry Associa@on
Overseas Organiser: •  Hunan Refractory Industry Associa@on
•  Replus Business (UK) Ltd. •  UK IMFORMED Industrial Mineral Forums & Research Ltd.
01
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Magnesite
Situa&on and Development of
Magnesium Industry in Liaoning
 Reserves of Magnesite
According to the survey of USGS, the es@mated reserves of magnesite in China is more than 1 billion tonnes
in 2019. Total annual produc@on of magnesite, in 2018, is about 19 million tonnes. The produc@on of
caus@c calcined magnesia (CCM), dead burned magnesia (DBM) and fused magnesia (FM) are 5 million
tonnes, 5 million tonnes and 2 million tonnes specifically.

World magnesite reserves is 8.5bn. tons in 2019 World magnesite produc&on is 29m. tons in 2018
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Data Source: USGS 2019

 Liaoning’s Magnesite
There are 27 mining areas distributed in 9 provinces of China. Liaoning province is the main storage site for
magnesite, which has advantages of high grade, shallow bury and easy open mining. In Liaoning province,
the reserves are distributed in Haicheng, Dashiqiao, Xiuyan, Fengcheng, Kuandian, Fushun and Liaoyang,
etc.

Distribu&on of magnesite resources in China (million tonnes)

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Data Source: Replus Business (UK) Ltd.

 Magnesia Export

China’s primary magnesia export markets in 2018 (total

2,768,427 tonnes)

The amount of export magnesium

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million tons (MT) in Liaoning
Province in 2017, a 34% increase
compared to the same period of
2016, which included magnesia
1.96 MT, up by 69% in 2017. The
primary export markets include
Japan, USA, Europe and other
Asian countries.

Data Souse: worldsteel

 Problems of Industry

v  Shortage of Supply
S v  Overcapacity caused by repeated
U D
construc@on
v  Reducing price because of the
P E
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oversupply, trade fric@on and

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Qualified Companies in vicious compe@@on

P Liaoning Province Only take M v  The lowest level of the high-tech
L A value chain
v  Pressures for environment
Y 23.4% N protec@on, energy saving and
emission reduc@on
D v  Urgent needs about how to
improve to high performing
manufactory
 2017 Produc&on of Companies
2017 Magnesium Refractories Annual Produc&on, Top 6 private companies in Liaoning, China (,000 tons)

No. Name CCM DBM FM High Pure Mid-grade

Magnesia Magnesia
1 Houying Group 300-400 200 40 100 --

2 Haicheng 250 ibaotu.com PPT

250 200 50 --
Pailou
Magnesium
Company
3 Huayu Group 240 200 40 50 120

4 Haicheng 174.5 102.3 51.7 23.4 --

Magnesium
Company
5 Jinding Group 100 -- 100 -- --

6 Fengchi Group 71.3 27.4 41.2 64.1 --

 Future Development
To achieve high-quality and high performing development of the magnesium industry in Liaoning,
comprehensive measures must be taken
Guangqi Han
Extensive resource mining will be improved to
Supply Chain
intensive and economical processing. Sustainable
development and high quality products will be
Most produc@on is for export, which include magnesia and other
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the trend.
magnesium products. The most domes@c demands are for
infrastructure and building industry, but the project investment are
Demand and Needs
reducing that will affect the demand and needs.
Low level of technology and innova@on
T e c h n o l o g y I n n o v a & o n

Human resource management caused the difficulty of sustainable Management and

development. In addi@on, it is difficult to recrui@ng and keeping Development
high-end talents due to the unbalanced economic development
between urban and countryside areas.
 High Performing Development

v  Reform the founda@on of industry to build high

performing processing and increase the quality of
products.
v  Looking for new energy to save the energy and protect
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environment.
v  The focus of work is to achieve high efficiency and
ensure stable growth
v  Carry out comprehensive management and the
ins@tu@onal innova@on to be applied across the
province.
v  Strengthen industrial policy guidance and raise the
threshold of market access.

From: worldsteel
02 Technology
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Scenario Analysis of Liaoning

Manufactory and Pollu&ons
 Schema@c diagram of magnesite processing

Caldcining
Furnace MgO-based Brick
(700-1000℃) (1300-1800℃)
Magnesite (MgCO3) CCM Tunnel Kiln CO2

Flota@on Dead-burned FM Furnace
(2500-3000℃)
Q
Furnace
1500-1800℃ PPT

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DBM FM

CO H2
CH4
O2
Electricity

The Caus@c Calcined Magnesite is made between 700℃ to 1000℃ from nature magnesite through calcining in
reverberatory furnace, rotary furnace and boiling furnace. The Dead Burned Magnesia is made between 1500℃ to
1800℃ and the Fused Magnesia is made between 2500℃ to 3000℃. Tunnel Kiln can be used to make MgO-based
bricks. From 2020, energy consump@on per unit of industrial added value will be reduced by 18%.
 Type of Furnaces & Kilns

Calcining Reverberatory Rotary Kiln

Furnace
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Suspension Furnace ShaN Kiln

China’s conveying bed

Mul@layer Furnace
flash light burning
 Equipment Required
E
N
FM furnaces with 1400 KVA or below.
C
Energy-saving and environmental friendly Furnace equipment with smoke / dust
O emission concentra@on greater than 200mg /
technology and equipment for crushing,
U screening, grinding, and ultra-fine grinding. m3
R High performance equipment for magnesia Calcining reverberatory furnace with
A produc@on, including large shaN kilns, effec@ve volume of 18 cubic meters or less.
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suspension furnaces, boiling furnaces and ShaN kiln for DBM with an effec@ve volume
G mul@-layer furnaces, etc. of 40 cubic meters or less. L
E High-temperature technology and The energy consump@on of exi@ng I
M equipment for calcined and fused magnesite produc@on cannot meet the required of “The M
processing. limita@on of per unit energy consump@on of
E magnesium refractory raw materials and
I
Automated produc@on technology and
N equipment with high efficiency, energy saving products” (Liaoning Province Standard N
T and security system (DR21/1642-2008) ) A
Technologies and equipment for Failure to comply with the relevant T
refractories recycling regula@ons of the Ministry of Industry and
Informa@on Technology Standards for E
Refractory Materials (2014 Edi@on) D
 Current Processing Steps

Step Equipment Emission Pollutant

Storage yards for materials, coal, raw Randomly without emission reduc@on
Storage Par@culates
material and fuel equipment

Different types of disintegrators，

reducing machine (without dry)
Processing: crushing, screening, screening machines, batching
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Randomly without emission reduc@on
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Par@culates
batching, mixing, forming, etc. equipment, mixing equipment, Form- equipment
machine, Brick Modelling press machine,
Products processing machines.

Dryer, drying kiln, mill with drying Randomly without emission reduc@on
Drying Par@culates, SO2, and NOx, etc.
func@on, etc. equipment

Randomly without emission reduc@on

Calcining and sintering Furnaces & Kilns Par@culates, SO2, and NOx, etc.
equipment

Packaging machines, conveyor

equipment, loading and unloading Randomly with emission reduc@on
Others Par@culates
equipment, transporta@on equipment, equipment
etc.

Solu&on:
v  Focus on the dust removal, desulfuriza&on and denitrifica&on
v  Limita&on of randomly emissions and required the emission reduc&on equipment
 Pollutant Source

1.  Sulfur from fuel, raw materials and

addi@ves
Pollutants SO2
2.  From Sulfur, H2S, FeS
3.  Released by burned or high
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temperature oxida@on

1.  High temperature NOx

NOx 2.  NOx from fuel
3.  Prompt NOx

Par@cu •  From produc@on processing, fuel, closed equipment,

lates dust removal facili@es, and pipeline design and
maintenance, etc.
 Environment Protec&on Standards

Local Standards Group Standards Government Standards

•  Shandong Province: “Emission

Standards for Air Pollutants in Building •  “Atmospheric comprehensive
•  “Emission standard of air
Materials Industry” DB37/2373-2018 pollutant emission standards”
(Published on 03/07/2018, executed
pollutants for refractories
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GB16297-1996
on 01/01/2019) industry” T/ACRI0006-2018
•  “Emission standard of air pollutants
•  Liaoning Province: “Emission (Published on 20/03/2018, for industrial furnaces”
standard of atmospheric pollutants for executed on 20/04/2018) GB9078-1996
magnesium refractory industry” •  “Emission standard of air pollutants
DB21/3011-2018 (Published on for refractories industry” Preparing
09/08/2018, executed on 01/01/2019)
•  Henan Province: “Emission standard
of air pollutants for industrial
furnaces” DB41/1066-2015 (Published
on 08/10/2015, executed on
01/01/2016)
 Equipment Upgraded

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Imported 2000T automa&c hydraulic press Tunnel kiln with gas system

Automa&c batching systems 1 Automa&c batching systems 2

03 Refractories
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Magnesia and Refractories

&
Transforma&on of China’s
Refractory
 Refractories
According to the research of Replus Business, total es@mated world consump@on of refractory minerals are about
35m tonnes in 2018. The largest consump@on is refractory clays (46%) and the second is magnesia (26%).

Industrial mineral Main chemical component Primary source country

Basic refractory
(incl. synthe@c)
Dead burned magnesia 85-99.8% MgO China
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Fused magnesia 97-99.8% MgO China

58-62% MgO,
Dead burned dolomite USA
36-40% CaO

Chromite >46% Cr2O3 South Africa

66-80% Al2O3,
Sintered/fused spinel China
21-33% MgO
40-50% MgO,
Olivine Norway
35-45% SiO2
 Magnesia Produc&on
DBM & FM >50% global magnesia produc&on for refractories China dominates world supply,
declining since 2010.
World magnesia produc&on by type World magnesia produc&on by region

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 Transforma&on of China’s Refractory

Keeping capacity and increasing output

Reorganised Industry and centralised produc@on
Environment friendly products
From product manufacturer to engineering PPT High-speed development will be
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service provider changed to High performance
Energy saving and emission reduc@on to
01
reduce the cost

05
Technology and Innova&on
02
Integrated innova@on with technology Reasonable profit
To get the comprehensive
04 benefits rather than just looking
03 for profits
04 Steel Industry
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Scenario Analysis of China’s Steel

Industry
 Global Steel Demand

Steel demand in developing

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Asian countries excluding China
is expected to grow by 6.5%
and 6.4% in 2019 and 2020
respec@vely, making it the
fastest growing region in the
global steel industry.
-World steel.org

 China Crude Steel Produc&on
In 2018, according to the data from central government, the crude steel produc&on was 928.26 million tonnes
(Mt), a 6.6% increase compared to 2017, steel materials produc&on was 1105.52 Mt, up 8.5% on 2017.
In total revenue was RMB 7.65 trillion，a increase of 13.8% over the same period of 2017, and the profit was RMB 470.4
billion, raising 39.3%.
No. Name Produc&on Profits (RMB)
2018 Crude Steel Produc&on, Top
7 private companies： 1
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SHAGANG GROUP 4066 Mt 26.1 billion

2 JIANLONG GROUP 2788 Mt 9.4 billion

3 CHINA FANGDA 1551 Mt 13.9 billion

GROUP CO., LTD
4 RIZHAO STEEL 1495 Mt 9.2 billion
HOLDING GROUP
5 SHAANXI IRON AND 1138 Mt 3.0 billion
STEEL
6 JINXI GROUP 1033 Mt 6.7 billion

7 NANGANG IRON & 1005 Mt 6.0 billion

STEEL UNITED CO. LTD.
In total 13076 Mt 74.3 billion
 2018 Distribu&on of China’s steel produc&on

Rate Province Produc&on Share % Growth (% y-on-y) 2020 Plan

(tons)
1 Hebei 23280 Mt 25.08 21.75 0.2 billion
2 Jiangsu 10601 Mt 11.42 1.66 0.12 billion
3 Shandong 7386 Mt PPT
7.96 3.33 80 million
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4 Liaoning 6762 Mt 7.28 5.28 －－

5 Shanxi 5389 Mt 5.81 21.65 －－
6 Anhui 3101 Mt 3.34 11.00 －－
7 Hubei 3074 Mt 3.31 6.92 －－
8 Henan 3005 Mt 3.24 1.71 －－
9 Guangdong 2880 Mt 3.10 -0.35 －－
10 Jiangxi 2499 Mt 2.69 -3.58 －－
In total 67976 Mt 73.23 －－ －－
 New loca&ons of Steel Distribu&on

Nov 2015, Announcement：

Reform the strategy of
Supply

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Phase-out outdated
produc&on facili&es

Migra&on Development
Move to southeast coast
 Improvement of Steel VS Refractory
Influence for
refractory
Produc&on and
U&liza&on of waste 1 High Quality management
heat in metallurgical op&miza&on
2 High Performance
process (energy saving)

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High quality (clean Control of

steel, ultra-clean metallurgical The change of types &
steel smel&ng) processing pollu&on quality improvement
emission of raw materials
(Environment
Protec&on)
 Performance requirements of refractory

Development and use of low-carbon or

carbon-free refractories
Technological advancements ibaotu.com
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in steel industry push the

improvement of refractories
Development and use of high-performance
insula&on materials

Development and use

Environmentally friendly binder
05
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Building Industry
China’s Magnesium Materials for
Building Industry
 Summary of Magnesium Building Materials
The future development of magnesium materials for building industry should focus on light, high performance and mul@-
func@onal to meet the needs of modern requirement. There are a lot of low-grade magnesite resources in China, and the
transform and upgrade of the materials should take the fully advantage of them, which will require first-class processing for
low-grade resources to get high performance products and build up a new emerging industry.
Professor Wanli Bi, Liaoning University of Science and Technology
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Ore, tailings and fine ore High content of SiO2, CaO

with MgO lower than 45% and Fe2O3, etc.

Accounted for more than 1/3 of What is the

The materials cannot be used
the magnesite mining volume low-grade for refractories
Magnesite
 Distribu&on of raw materials
So far, in Liaoning, China, the reserves of low-grade magnesite with 35-43% MgO is nearly several billion tons. If
not be used properly, the resources may be wasted and it may pollute environment.
Magnesium cemen@@ous materials are mainly divided into magnesium oxychloride cement (MOC), magnesium
oxysulfate cement (MOS), magnesium phosphate cement (MPC) and hydrated magnesium silicate cement
(MSH).
CCM KH2PO4
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Most produc@on is in Liaoning Mainly concentrated in Sichuan

a n d H u n a n , t h e a n n u a l
province, with a total annual
produc@on capacity is about
output of about 11 million tons. 800,000 tons.

MgCI2 MgSO4
Mainly distributed in Liaoning, Mainly distributed in coastal
Hebei, Tianjin, Shandong, Jiangsu provinces and ci@es such as
and other coastal provinces and L i a o n i n g , H e b e i , T i a n j i n ,
ci@es and Qinghai Golmud inland Shandong and inland areas such
areas. The total annual output is as Xinjiang and Qinghai. The total
about 31 million tons. annual produc@on capacity is
1.267 million tons.
 Magnesium Products for Building

Others
Marine Structure
Large agricultural
Craks
Constric&on scaffolding, trench cover
Tradi&onal plates, Mining
Light weight
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Fish reef, bridge
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Architectural suppor@ng materials,
Magnesium plate par@@on boards, board, sea ship cabin
decora@on craNs, cable bridges, highway
(fireproof board) (take mobile homes, board and sea salt
garden decora@on noise barriers, tunnel
60% of total products), composite thermal storage board etc.
craNs and indoor fire panels and fence
Decora@ve sheet, insula@on roof craNs & ornaments, grids, etc.
Packaging boxes, Fire panels and etc.
door and Construc@on ven@la@on pipes,
plywood, etc. etc.
 Products Features
In China, there are more than 100 types of magnesium materials for building industry, and more than 3000
produc@on enterprises. The in total annual output value is about RMB 102 billion that included magnesium
raw materials, products and equipment, etc.

Products’ features: light, high performance, excellent

fire resistance, fire resistance, low temperature
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resistance, heat preserva@on and heat storage, energy

saving, comprehensive u@liza@on of resources,
emission reduc@on and environmental protec@on.

Fire retardant, waterproof, heat insula@on, light
earthquake, blocking noise, energy saving and
environmental protec@on, construc@on of fast, easy
decora@on, fashion, health, economic and other
benefits.
 Industrial problems and solu&ons

Main Problems
•  Insufficient industry management and lack of rules
and guidance
•  Vicious compe@@on caused serious difficul@es for PPT

industrial upgrading
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•  Poor ability of technological innova@on and lack of

technical talent
Poli&cal Advantage Benefits from resource and
•  It is difficult to keep the quality of magnesium raw
materials •  Raw materials should be technology
•  Most enterprises are with small size, which shows allocated evenly. •  Build up show rooms for
backward in technique, low produc@ve efficiency •  Industry should be magnesium materials used in
and serious environmental pollu@on restructured. building and construc@on
•  Need support from government industries.
•  Strengthen the logis@cs
system and increase the •  Specific service areas for
sites. magnesium materials and
related applica@on
 Replus Business
Thanks (UK) Limited
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Business Link between the UK and

China’s markets
 Replus Business (UK) Limited
Industrial Mineral Chinese Market Intelligence
Custom Report & Upstream Marke@ng Consul@ng

•  Launched in May 2013

•  China’s Magnesium Informa&on Intelligence
•  Event and digital marke&ng PPT

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Focusing on:
•  China’s Magnesia
•  Refractory Industry

Specialising in:
•  Refractory Minerals
•  Market Intelligence
•  Research and analy@cal reports
•  B2B Marke@ng
•  Digital Marke@ng
 Contact Us Today
Address Unit F10, INTEC, Parc Menai, Bangor
LL57 4FG
Tel +44 (01248) 672 658
Mob: +44 (0) 7588 158 285
Email: info@replusbiz.co.uk
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Magnesia and Refractory Digital Marke&ng

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Intelligence Consultancy
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Website: h]ps://www.replusbiz.co.uk/magnesiumminerals