China s magnesite industry: s magnesite industry: China - PowerPoint PPT Presentation

China’ ’s magnesite industry: s magnesite industry: China resources, supply, resources, supply, & global influence & global influence Mike O’ ’Driscoll, Driscoll, Mike O Editor, Industrial Minerals Editor, Industrial Minerals Impact of China on industrial minerals Impact of China on industrial minerals SME 2009 Annual Meeting & Exhibit SME 2009 Annual Meeting & Exhibit 22- -25 February 2009, Denver 25 February 2009, Denver 22

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver Industrial Minerals Industrial Minerals Metal Bulletin Ltd, UK Metal Bulletin Ltd, UK Since 1967, delivering premium Since 1967, delivering premium information on news and trends in information on news and trends in global supply and demand of global supply and demand of industrial minerals industrial minerals From mine to market: From mine to market: global non- -metallic minerals metallic minerals global non intelligence intelligence

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver Industrial Minerals Industrial Minerals From mine to market: global non- -metallic minerals intelligence metallic minerals intelligence From mine to market: global non • magazines magazines • • on on- -line line • www.indmin.com www.indmin.com • events events • directories directories • •

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver IM ONLINE LAUNCH MARCH 2009 IM ONLINE LAUNCH MARCH 2009 • enhanced daily online news coverage enhanced daily online news coverage • • online pricing news & user friendly historical price data online pricing news & user friendly historical price data • • weekly e weekly e- -mailed news summary mailed news summary • • news & IM monthly archive since 1999 news & IM monthly archive since 1999 • • content searchable & news alerts customised by content searchable & news alerts customised by • market sector market sector

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver UPCOMING EVENTS 2009 UPCOMING EVENTS 2009

China’ China ’s magnesite industry s magnesite industry Mike O’ Mike O ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver Outline Outline 1. The Big Picture 1. The Big Picture 2. China’ ’s magnesite industry s magnesite industry 2. China 3. Situation in China 3. Situation in China 4. Influence on world market 4. Influence on world market 5. Market outlook 5. Market outlook 6. Summary & conclusions 6. Summary & conclusions

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 1. The Big Picture 1. The Big Picture Early 2006: a leading trader commented: Early 2006: a leading trader commented: “I feel that I feel that once the Chinese government is once the Chinese government is “ introducing a new tax to curb the export of introducing a new tax to curb the export of minerals, obviously they do not worry about minerals, obviously they do not worry about the competitiveness of Chinese minerals in the the competitiveness of Chinese minerals in the international market any more.” ” international market any more.

China’ China ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 1. The Big Picture 1. The Big Picture Early 2006: a leading trader commented: Early 2006: a leading trader commented: “The overseas buyer will either be The overseas buyer will either be “ forced to pay a significantly higher forced to pay a significantly higher price for Chinese minerals or buy or buy price for Chinese minerals from an alternative source.” ” from an alternative source.

China’ China ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 1. The Big Picture 1. The Big Picture August 2008: a western producer & consumer stated: August 2008: a western producer & consumer stated: “At the end of 2009 we should be independent At the end of 2009 we should be independent “ regarding supply of [Chinese] DBM and FM.” ” regarding supply of [Chinese] DBM and FM. “A similar strategy should be the base for any A similar strategy should be the base for any “ serious producer of magnesia based refractory serious producer of magnesia based refractory products.” ” products.

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 1. The Big Picture 1. The Big Picture January 2009: leading Western traders: January 2009: leading Western traders: “Everything has stalled! Everything has stalled!” ” “ “Lower pricing is anticipated in 2009 Lower pricing is anticipated in 2009” ” “ “Demand will be the key, as first quarter Demand will be the key, as first quarter “ purchase quantities are expected to be well below purchase quantities are expected to be well below normal historic levels.” ” normal historic levels.

China’ China ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Resources – – 3,319m. tonnes 3,319m. tonnes Resources Source: Ian Wilson (2008) Source: Ian Wilson (2008)

China’ China ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Magnesite mined – – 8.36m. tonnes 8.36m. tonnes Magnesite mined Source: Ian Wilson (2008) Source: Ian Wilson (2008)

China’ China ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Magnesia produced – – 4.1m. tonnes 4.1m. tonnes Magnesia produced Source: Ian Wilson (2008) Source: Ian Wilson (2008)

Resource & production location Resource & production location Liaoning Bayuquan magnesite port Tibet magnesite Shandong magnesite

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Haicheng Dashiqiao Belt Haicheng Dashiqiao Belt Source: Ian Wilson (2008) Source: Ian Wilson (2008)

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Haicheng Dashiqiao Belt Haicheng Dashiqiao Belt Source: Ian Wilson (2008) Source: Ian Wilson (2008)

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Huaziyui mine, Liaoning

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Pailou Mine, Liaoning

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Pailou Mine, Liaoning

China China’ ’s magnesite industry s magnesite industry Mike O Mike O’ ’Driscoll, IM, SME 2009, 22 Driscoll, IM, SME 2009, 22- -25 February 2009, Denver 25 February 2009, Denver 2. China’ ’s magnesite industry s magnesite industry 2. China Pailou Mine, Liaoning