Tang Yinxuan: Rare earth tricolor phosphor demand to decrease in the coming years

Asian Metal: Good day, Mr.Tang. Thank you for granting this interview. Could you please give us a brief introduction to your company?

Tang: Our company is a jointly established large rare earth phosphor production enterprise between China Minmetals Corporation and Hhangzhou Daming Fluorescent Material Co., LTD. Our company covers an area of 130 mu and produces 2000 tonnes of rare earth tricolor phosphor per year.

Asian Metal: Please could you illustrate the current applications of rare earth tricolor phosphor?

Tang: Rare earth tricolor phosphor is used to produce rare earth energy-saving lamps at present. Rare earth energy-saving lamps can save 80% more energy than filament phosphor. Color rendering reaches more than 80% and the light is similar to sunshine. With a working life of 5000 hours, rare earth energy-saving lamps are the first choice for energy-saving and environmentally-friendly illumination. China began to research rare earth energy-saving lamps in the 1980s and has become the global manufacturing base for this kind of lamp. China produced more than five billion rare earth energy-saving lamps and 8,500 tonnes of rare earth tricolor phosphor between 2010 and 2013.

Asian Metal: The rare earth tricolor phosphor market is subdued and most phosphor plants are running with low production right now. What do you think about this?

Tang: The rapid development of LED shocked the rare earth tricolor phosphor market. In addition, lamp producers have improved their technology, reducing the consumption of rare earth tricolor phosphor in lamps and instead turning to calcium halophosphate fluorescent powder. China’s rare earth tricolor phosphor production dropped to 4,500t in 2013 from 8,500t in 2011.

The combination of improving technology, markets and new products has caused rare earth tricolor phosphor production to slide. China’s production capacity for rare earth tricolor phosphor is more than 20,000t and with demand currently at 4,000-5,000t, most phosphor plants can only achieve 30% production. Producers are either ceasing to produce rare earth energy-saving lamps or turning to producing LEDs. Substituting new products for old is normal, and although it is cruel on enterprises, they have to keep innovating and transforming.

Asian Metal: What is your opinion on demand for rare earth tricolor phosphor for this year?

Tang: In my opinion, demand for rare earth tricolor phosphor will decrease by 500 tonnes from last year to 4,000 tonnes this year. The level of demand will be weaker in H2.

Asian Metal: What do you think about the development of rare earth tricolor phosphor over the next three years?

Tang: I believe demand for rare earth tricolor phosphor will decrease each year,given the coming deals and the demand will be less than 1,000 tonnes by 2017.

The lighting industry is diversifying. Rare earth energy-saving lamps will exist for quite some time, while their market share will decrease gradually.

The decrease in production of rare earth tricolor phosphor may not be so bad, as we can use rare earth for more advanced applications.

Asian Metal: As we know, your company is setting up an LED project. Can you tell us about it?

Tang: Our LED project includes three parts: firstly, fluorescent material which can absorb blue light and glows with red, green and yellow light. Secondly, research and application of new packaging technologies. Thirdly, [?matched driving powder?].

Asian Metal: What advantages does LED have compared to rare earth tricolor phosphor? What do you think about the rapid development of the LED market?

Tang: The targets of modern lighting sources: energy-saving, environmentally friendly and ample light sources.

1.LEDs’ light output is 120-150lm/W, while the light output of filaments and rare earth energy-saving lamps are 8-131m/W and 50-90lm/W.

2.LEDs consume very little rare earth and are free from damaging mercury, while their working life is 5-10 times that of rare earth energy-saving lamps.

3.The light produced by LEDs is closer to sunshine and can be colored when used in cooperation with digital circuits.

LEDs will become a mainstream lighting source over the next ten years due to the above advantages, and their production will be similar to other electrical products.

Asian Metal: Thanks for your time and we wish your company a bright future.