Wei Dong: Black silicon carbide market to deteriorate without rising demand

Asian Metal: Mr. Wei, It’s my pleasure to have the interview with you, and thanks for your time. First of all, please give us a brief introduction of your company.

Wei: Our company mainly focuses on black silicon carbide smelting and processing black silicon carbide segment sands, grain sands and powder, with production capacity of 30,000tpy and powder processing capacity of 300-400tpy. With an output of 1,000t in October, I predict that our capacity will reach 15,000-1,6000t this year. We hold about 1,000t of stocks currently, 70% of which are grade-one black silicon carbide inventories. We are developing export business now.

Asian Metal: What’s your company’s current project, including equipments’ upgrade and reformation?

Wei: Our company mainly processes black silicon carbide segment and grain sands and black silicon carbide F0-240, and we have imported some powder processing equipments by now. Our company is expected to produce black silicon carbide F280, F320 and F400 in late 2014 or January 2015 and the capacity is 300-400tpy.

Asian Metal: What’s the current supply and demand situation in Ningxia region?

Wei: As Chinese black silicon carbide capacity has been increasing fast in recent two years, the supply is abundant in Ningxia with no signs of rising demand on the spot market. Moreover, the economic situation is gloomy this year and there are no breakthroughs in new development of black silicon carbide, so sales are more difficult than same period of last year.

Asian Metal: The current purchase and demand situation in each consuming area?

Wei: The main consuming areas of black silicon carbide are refractory and abrasive markets. Due to bad performance of steel industry this year, demand is weak from related downstream consumers compared to last year. Some customers purchased about 40t of grade-one black silicon carbide every month last year, but their purchase volumes decline slightly currently, because their end-users - steel mills decrease production capacity and show weak demand for black silicon carbide. To produce abrasive only needs a few superior grade-one black silicon carbide powder, and demand remains stable in recent two years.

Asian Metal: According to export data from China Customs, China silicon carbide exports climbed up by 8.53% MOM in August. Do you think silicon carbide export market will keep an upward trend in the short term?

Wei: The export data collected by China Customs mixes black silicon carbide and green silicon carbide together, so the upward trend in August cannot represent black silicon carbide export situation totally. In my opinion, silicon carbide export market becomes more active which is motivated by the rising exports of green silicon carbide, as strong demand is witnessed on the overseas PV market, while overseas consumers still have no interest in purchasing grade-one black silicon carbide currently. China black silicon carbide exports show a downward trend compared to the same period last year. Overseas buyers hold a wait-to-see attitude in making purchases and still await a lower price for black silicon carbide to make the deal.

Asian Metal: What’s your opinion about the future development of black silicon carbide?

Wei: As black silicon carbide has not sought a new development area yet, the market will see no improvements in the near future. I predict that the future development of black silicon carbide will focus on some high value-added products, such as the mixture by silicon carbide and other materials and silicon carbide single crystalline, or put silicon carbide into the semiconductor industry and so on.

Asian Metal: What do you think of the black silicon carbide market trend late 2014?

Wei: Black silicon carbide producers have to empty inventories, so the prices may be dip slightly, but it will be little room for the prices to fall further in the end of this year. As for the export market, overseas consumers will be active in making purchases because they will build some stocks of black silicon carbide and prepare for their traditional holidays - Christmas holidays. In addition, Chinese black silicon carbide producers face a heavy stock pressure, so they are eager to clean the inventory. As a result, the export price may stay at the current level in the coming months.

Asian Metal: I really appreciate your time and the opportunity to interview with you. Meanwhile, I wish your company will have more business opportunities and the black silicon carbide market will see a flourishing future!