[Market Participants Became More Rational in Sentiment, and Grain-Oriented Silicon Steel Prices May Fluctuate Rangebound Next Week] In terms of transactions, the procurement pace of end-use industries such as downstream transformers and power equipment slowed down, and purchase willingness remained cautious, with procurement mainly consisting of small-volume, as-needed restocking orders, while large-volume purchasing activity was scarce, resulting in relatively low actual market trading activity. In addition, resources from steel mills’ earlier directed orders arrived successively, and traders’ circulating inventory accumulated steadily. Some merchants offered slight price concessions to accelerate turnover and boost shipments, but the overall room for concessions remained limited and failed to effectively lift transactions.

Q: What is the current distribution of primary magnesium production capacity at home and abroad? How is the export situation of domestic magnesium products? A: In 2024, the global primary magnesium production reached 1.12 million mt, up 12% YoY. In 2024, China's primary magnesium production capacity was 1.4875 million mt, up 9.29% YoY; primary magnesium production was 1.0258 million mt, up 24.73% YoY; and magnesium alloy production was 396,800 mt, up 14.95% YoY. According to statistics from China Customs, from January to December 2024, China exported a cumulative total of 459,800 mt of various magnesium products, a 13.62% increase from 404,700 mt in 2023. Q: Could you please introduce the company's operating performance in 2024? A: In 2024, the company achieved operating revenue of 28.12 billion yuan, up 17.39% compared to the same period last year. Net profit attributable to shareholders of publicly listed firms was 159.628962 million yuan, down 47.91% compared to the same period last year. This was mainly due to the decline in magnesium prices, which led to a decrease in the gross profit margin of magnesium materials and die-casting products, resulting in a year-on-year decline in the company's performance. Q: What progress has been made in downstream magnesium deep-processing products in the automotive sector? A: In 2024, the company achieved over 20% growth in the number of steering wheel products, CCB products, and seat products compared to 2023. It strengthened strategic cooperation with top-tier enterprises in the industry and achieved business reserves for multiple new products. Q: How does the company view the relationship between magnesium and aluminum prices? A: As magnesium prices fall below aluminum prices, it presents a good opportunity for the magnesium industry. It is more conducive to expanding the application of magnesium in downstream sectors such as large automotive components, integrated die-casting of automotive magnesium alloy large components, robots, and construction templates, which will further enhance the enthusiasm of downstream customers to use magnesium. Previously, we promoted the application of magnesium from a performance perspective, but now we can also promote it from a cost perspective. Q: What is the company's ore reserve situation? A: The company's subsidiaries, Chaohu Baomei and Wutai Baomei, hold dolomite ore reserves of 88.6425 million mt and 578.95 million mt, respectively. The company's equity-accounted company, Anhui Baomei, holds dolomite ore reserves of 1.3197813 billion mt. Gansu Mining holds 1.6889 million mt of proven reserves in the Zhongliangzi quartzite mine in Yongdeng County and 1.26 million mt of proven reserves in the Zhongliangzi Nangou quartzite mine in Yongdeng County. The resource guarantee has further consolidated the stability of raw material supply for the company in the production of primary magnesium and magnesium alloys, laying a foundation for the development of the entire industry chain. During the reception process, sufficient exchanges and communications were conducted with investors, and the company strictly adhered to regulations such as the "Information Disclosure Management System" to ensure the truthfulness, accuracy, completeness, timeliness, and fairness of information disclosure. There were no cases of undisclosed material information leakage, and the company had signed the "Letter of Commitment" for surveys as required by the Shenzhen Stock Exchange. According to the record of the survey conducted with specific targets on March 13, as announced by Baowu Magnesium Industry: Q: Could you please introduce Baowu Magnesium Industry? Baowu Magnesium Industry responded: Baowu Magnesium Industry Technology Co., Ltd., formerly known as Nanjing Yunhai Special Metals Co., Ltd., was established in 1993 and listed on the Shenzhen Stock Exchange in 2007. After more than three decades of development, the company has become a high-tech enterprise integrating mining, non-ferrous metal smelting, and recycling processing. Its main business is the production, deep processing, and sales of magnesium and aluminum alloy materials. Its main products include magnesium alloy, magnesium alloy die-castings, aluminum alloy, aluminum extruded micro-air conditioner flat tubes, aluminum extruded automotive structural parts, master alloys, and metal strontium, among others. These products are mainly applied in fields such as automobiles, lightweight e-bikes, consumer electronics, and construction. The company possesses a complete "dolomite mining - crude magnesium smelting - magnesium alloy melting - precision casting and deformation processing of magnesium alloy - magnesium alloy recycling" industry chain. The optimization of the entire industry chain enhances the company's product cost structure and risk resistance capabilities, enabling it to steadily provide customers with various products. Q: What are the company's plans for the overall expansion of downstream deep processing? Baowu Magnesium Industry responded: The company has six die-casting bases nationwide, providing customers with a full set of lightweight solutions. It owns over 200 die-casting units and nearly a thousand machining centers, with surface treatment capabilities for components. It also has the ability to independently develop, design, and manufacture molds, and possesses a strong R&D and design team to meet customers' varying design needs. The company's magnesium alloy deep-processed products primarily focus on automotive components, e-bike components, robot components, and magnesium building templates. Automotive components include small parts such as steering wheels and steering components, as well as medium-to-large parts like instrument panel brackets, seat brackets, center console brackets, display back panels, and side door inner panels. Magnesium alloy is applied in components such as e-bike wheel hubs and front forks. Robot components include covers, bases, control arms, and other parts. Magnesium building templates include ceiling panels and wall panels. Magnesium alloy deep-processed products also include magnesium hydrogen storage materials and integrated die-castings. Aluminum alloy deep-processed parts mainly expand into automotive extruded structural parts and micro-channel flat tubes. Q: How does the company view the application of magnesium alloy in robots? Baowu Magnesium Industry responded: The company has always attached great importance to the promotion and application of magnesium materials in the robotics field. Magnesium alloy empowers the robotics industry with four major advantages: "lightness, speed, stability, and cost-effectiveness," aiming to demonstrate stronger competitiveness and bring lightweight, efficient, and responsive new solutions to the industrial automation field. The use of magnesium alloy materials can meet the requirements of efficient transmission, reliability, and stability in robots. Additionally, magnesium alloy has good recyclability, reducing environmental pressure and meeting environmental protection requirements. Q: Could you introduce the company's strontium metal products? Baowu Magnesium responded: Strontium is a silvery-white metal with a yellowish tinge, belonging to the alkaline earth metals. It is the least abundant alkaline earth metal (excluding beryllium) and exists in nature in a combined state. Strontium can be added to metals such as aluminum and magnesium to form alloys, enhancing their strength, hardness, and corrosion resistance. Additionally, adding a small amount of strontium during the processing of some metal materials can refine the grain structure. Currently, the company has a production capacity of 3,000 mt/year of strontium metal, with an annual production of approximately 2,500 mt. Q: What is the company's future development strategy? Baowu Magnesium responded: The company places great emphasis on R&D innovation and technological accumulation. It always regards technological innovation and new product development as the core development strategy, with technological innovation as the primary driving force for development. The company continuously increases its R&D efforts in new technologies and new products. After years of technological accumulation, the company has independently developed a complete set of magnesium reduction and magnesium alloy production and processing equipment and processes, as well as a direct magnesium liquid supply system. Its energy-saving and consumption-reduction levels in primary magnesium production are among the best in the industry. The company has also independently developed large-tank vertical-tank magnesium smelting technology, magnesium alloy melting and purification technology, and magnesium alloy forming technology, all of which are at the leading level in the industry. Leveraging its existing R&D and production platforms, the company has undertaken and completed multiple scientific research projects at the national and provincial levels through industry-university-research cooperation. The company continues to promote the technological transformation and upgrading of its industries, driving the transformation of its industries towards high-end, intelligent, and green development. With the steady advancement of automotive lightweighting, the company's automotive product business continues to grow, and the demand for medium-to-large magnesium alloy components increases year by year. The company is expanding its deep-processing business to ensure the supply of medium-to-large automotive parts, achieving product structure adjustment and business transformation and upgrading, improving resource utilization efficiency, and optimizing the industrial structure. On the basis of stabilizing the supply of basic magnesium alloy materials, the company focuses on expanding downstream deep-processing businesses such as magnesium alloy automotive die-casting parts. On March 12, Baowu Magnesium stated on the investor interaction platform that the company currently cooperates with companies producing industrial robots. Magnesium alloy empowers the robotics industry, aiming to demonstrate stronger competitiveness with its four major advantages of "lightness, speed, stability, and cost-effectiveness," bringing lightweight, high-efficiency, and fast-responding new solutions to the field of industrial automation. Recently, Autoliv (China) Automotive Safety Systems Co., Ltd., a leading enterprise in the automotive safety systems industry, reached a strategic cooperation agreement with Baowu Magnesium Technology Co., Ltd. The two parties will engage in in-depth cooperation in areas such as automotive lightweighting and safety performance enhancement, jointly driving technological innovation and sustainable development in the automotive industry. In this strategic collaboration, both parties will leverage their respective strengths in technology, resources, and markets to jointly explore the application of magnesium alloy materials in automotive safety systems. Baowu Magnesium announced on the evening of March 5 that the company had recently received the "Mining License" issued by Xinzhou Municipal Planning and Natural Resources Bureau. The mine is named as the Dolomite Mine in Dapu Village, Dongzhi Town, Wutai County, with the mining species being metallurgical dolomite, refractory dolomite, and construction dolomite. The production scale is 10 million mt/year, with a validity period from March 4, 2025, to March 4, 2055. The announcement revealed that Wutai Yunhai Magnesium Industry Co., Ltd., a subsidiary of the company, participated in the auction for the "Mining Right of Dolomite Mine in Dapu Village, Dongzhi Town, Wutai County, Xinzhou City, Shanxi Province" conducted by Xinzhou Municipal Planning and Natural Resources Bureau to ensure a stable supply of raw materials for primary magnesium and magnesium alloy production, and successfully won the mining right at a price of 1.168 billion yuan on November 3, 2023. Given that Baowu Magnesium has not yet released information on its 2024 corporate performance, a review of its Q3 report shows that in the first three quarters, the company achieved operating revenue of 6.347 billion yuan, up 14.09% YoY; net profit attributable to shareholders of the listed company was 154 million yuan, down 25.88% YoY. During the reporting period, Baowu Magnesium's basic earnings per share was 0.155 yuan, with a weighted average return on net assets of 2.88%. Baowu Magnesium's Q3 report indicates that the increase in operating revenue was mainly due to higher sales of deep-processed products compared to the same period last year. Regarding the decrease in net profit, Baowu Magnesium stated that it was due to a decline in magnesium prices and a decrease in the gross profit margin of magnesium alloy products. Magnesium prices experienced multiple rounds of increases last week. In addition to the effective alleviation of magnesium ingot supply issues due to factory rectifications, which restored market confidence, there was also an increase in foreign trade container freight rates, further stimulating downstream demand. Domestic downstream restocking followed suit, and market trading volume continued to improve, driving magnesium prices higher. 》Click to view SMM magnesium spot prices 》Subscribe to view historical price trends of SMM metal spot prices According to SMM quotes, on March 17, SMM magnesium ingot 9990 (Fugu, Shenmu) was quoted at 15,550-15,650 yuan/mt, with an average price of 15,600 yuan/mt. This average price fell by 50 yuan/mt from the previous trading day and rose by 550 yuan/mt from the early low of 15,050 yuan/mt on March 7, representing a 3.65% increase. SMM analysis suggests that, based on current market performance, as inventory in the main production areas continues to destock, bearish sentiment in the magnesium market has been alleviated. However, considering the general acceptance of high prices by downstream buyers, there is limited support for magnesium prices to fluctuate at highs in the future. SMM will continue to monitor changes in spot transactions. Business Matchmaking for Magnesium Industry Companies Registration for the 2025 Magnesium Industry Chain and Magnesium Market Forum is Now Open Please contact: 13162929454 (Jiaxin Lu)

With Gasgoo Daily, we will offer daily important automotive news in China. For those we have reported, the title of the piece will include a hyperlink, which will provide detailed information.

According to the website of the People's Government of Shanxi Province, on May 21, the Shanxi Provincial Government and China Baowu Steel Group Corporation Limited held a working meeting. Both sides introduced their respective situations in terms of economic and social development, as well as the quality improvement and upgrading of the steel industry. They expressed their commitment to fully leverage their respective advantages, accelerate the implementation of cooperation initiatives, focus on promoting the high-end, intelligent, and green development of the steel industry, cultivate and develop new quality productive forces, and achieve win-win cooperation in contributing to the Shanxi chapter of Chinese-style modernization.

To achieve synergies and enhance market competitiveness, Baosteel (600019.SH) plans to invest 9 billion yuan in Maanshan Iron & Steel Co., Ltd. (hereinafter referred to as "Ma Steel Limited"), a subsidiary of Maanshan Iron & Steel Co., Ltd. (hereinafter referred to as "Ma Steel"). This evening, Baosteel announced its intention to invest 9 billion yuan in Ma Steel Limited, which will result in a 49% stake in the company upon completion of the transaction. Notably, as of the end of 2024, Ma Steel Limited's revenue was 70.66 billion yuan, but its net profit was -4.051 billion yuan, accounting for 86.95% of Ma Steel's total losses. Since both Ma Steel and Ma Steel Limited are indirectly controlled subsidiaries of China Baowu, the controlling shareholder of Baosteel, this transaction constitutes a related-party transaction. Baosteel stated that Ma Steel is one of the largest steel producers and sellers in China with a single production site, featuring a product structure of "special steel, wheel axles, long products, and sheets & plates." This related-party transaction aligns with Baosteel's strategic vision of "becoming the most competitive steel enterprise globally and the most valuable publicly listed firm for investment." It leverages the company's professional sector advantages, effectively enhances the competitiveness of both parties, achieves synergistic development and shared benefits, and further strengthens regional market influence and competitiveness. Based on the financial data disclosed by both parties, Baosteel's audited total assets at the end of 2023 reached 376.051 billion yuan, with net assets attributable to shareholders of the publicly listed firm at 20.0325 billion yuan. Its audited operating revenue for 2023 was 344.5 billion yuan, with net profit attributable to shareholders of the publicly listed firm at 11.944 billion yuan. The company has not yet announced its 2024 performance, but as of Q3 2024, its net profit was 5.882 billion yuan, demonstrating strong profitability despite the industry downturn. In contrast, Ma Steel performed poorly during the industry downturn, with audited operating revenue of 81.817 billion yuan and net profit attributable to parent company owners of -4.659 billion yuan as of 2024, and cumulative losses exceeding 6.8 billion yuan from 2022 to 2024. The specific details of the transaction are as follows: Baosteel plans to acquire a 35.42% stake in Ma Steel Limited held by Ma Steel for 5.139 billion yuan in cash, while simultaneously increasing its capital in Ma Steel Limited by 3.861 billion yuan in cash, with a total investment potentially reaching 9 billion yuan. According to the evaluation results of the appraisal company, as of February 28, 2025, the net asset value of Ma Steel Limited under the asset-based method was 14.506 billion yuan, representing an increase of 1.977 billion yuan, or 15.78%, compared to the audited consolidated net assets attributable to parent company shareholders of 12.529 billion yuan. Compared to the audited standalone net asset book value of 10.077 billion yuan, the evaluation increased by 4.429 billion yuan, or 43.95%. For Ma Steel, although its stake in Ma Steel Limited decreased from 100% to 51%, it still maintains a controlling position and will continue to consolidate Ma Steel Limited. Through Baosteel's investment, it will help optimize the capital structure, enhance capital strength, and provide financial support for future development. Additionally, leveraging Baosteel's resources and advantages will promote innovation in Ma Steel Limited's management and business models, enhancing its core competitiveness and overall strength. Baosteel's investment in Ma Steel Limited, a loss-making asset, also drives the consolidation of the steel industry, which will have a profound impact on both companies and the overall industry landscape, potentially injecting new vitality into the industry. However, the steel industry downturn has not yet ended, and this transaction faces numerous challenges. Effectively integrating the corporate cultures, management systems, and business processes of both parties to achieve true synergies is a significant challenge for Baosteel. Moreover, the complex and volatile market environment of the steel industry, including fluctuations in raw material prices and changes in market demand, may impact the future performance of Ma Steel Limited.

On March 25, the Xipo Iron Ore Project, jointly developed by China Baowu and Rio Tinto, reached a significant milestone—the most critical belt system was put into operation on schedule, marking the full completion of the project's main engineering and the attainment of large-scale production capacity.

[SMM Magnesium News] On May 23, 2025, Wang Qiangmin, Secretary of the Party Committee and General Manager of Baowu Magnesium Technology Co., Ltd. (hereinafter referred to as "Baowu Magnesium"), and Wen Faping, Deputy Secretary of the Party Committee and Vice Chairman, along with their delegation, made a special trip to Anhui JAC Group Co., Ltd. (hereinafter referred to as "JAC Group") for a visit and exchange. Xiang Xingchu, Secretary of the Party Committee, Chairman, and General Manager of JAC Group, as well as Ma Cuibing, Director and Deputy General Manager, warmly received the delegation at the group's headquarters. Subsequently, the two sides conducted in-depth cooperation exchanges and officially signed a strategic cooperation agreement, jointly pressing the "accelerator" for innovative development in the automotive industry.

[Personnel Changes at China Baowu!] On June 5, Taiyuan Iron and Steel (hereinafter referred to as TISCO) held a special governance promotion meeting on the issue of "transportation and delivery of finished steel products". Wu Haishan, member of the Standing Committee of the Party Committee and Secretary of the Disciplinary Inspection Commission of TISCO Group, attended and presided over the meeting. Reports indicate that Wu Haishan has been transferred to serve as member of the Standing Committee of the Party Committee and Secretary of the Disciplinary Inspection Commission of TISCO Group. Previously, Wang Zhen served as the Secretary of the Disciplinary Inspection Commission of TISCO Group, and Wang Zhen, the former Deputy Secretary of the Party Committee and Secretary of the Disciplinary Inspection Commission of TISCO Group, has been transferred to serve as the General Manager of Baowu Environmental Technology and Baowu Water.

Recently, Baowu Resources' Singapore subsidiary (referred to as "Resources Singapore") and Malaysia's United Steel Group (referred to as "Malaysia United Steel") signed a strategic cooperation agreement for 2025 at the Malaysia-China Kuantan Industrial Park (MCKIP). This signing marks an upgrade in their collaboration since their first partnership in 2024, and both parties will continue to explore diversified cooperation models in the bulk raw material and fuel supply chain. Malaysia United Steel, located in the Malaysia-China Kuantan Industrial Park (MCKIP), a "Two Countries, Twin Parks" project under the Belt and Road Initiative, has an annual production capacity exceeding 3.5 million mt, making it the largest steel plant in Malaysia. Baowu Resources Singapore is a subsidiary of Baowu Resources' marketing and trade division. Strengthening strategic cooperation with a leading steel enterprise in Southeast Asia signifies a solid step forward for the company in steadily expanding its presence in the Southeast Asian market, contributing to further optimizing the international raw material and fuel supply chain network.

[SMM Magnesium News] Baowu Magnesium Industry's salt lake in Qingyang County has entered the trial production phase on June 3. It is reported that the company has achieved a new breakthrough in its magnesium extraction process from salt lakes, reducing the steps of directly refining primary magnesium from dolomite and directly producing magnesium alloy, thereby cutting production costs by 30%. The purpose of this trial production is to update and iterate the process to achieve future mass production.