Alex Wu: Stocks in exchanges keep increasing and demand improves, Chinese bismuth metal market short-term outlook optimistic

Asian Metal: Thanks for accepting the interview. Could you please briefly introduce your company and tell us how you are involved in the bismuth market?

Alex: Hunan Jinwang Bismuth Industrial Co., Ltd. was established in April 2001. It is a high-tech corporation dealing with the comprehensive recovery and deep processing of bismuth resources. Our main product capacities are as follows: high-purity bismuth, 8,000 tonnes per year; ultra fine bismuth oxide, 3,500 tonnes per year; pharma bismuth salts, 1,000 tonnes per year; silver, 500 tonnes per year; tellurium, 300 tonnes per year; gold, 10 tonnes per year; and a variety of metal recovery. When fully operational, the annual sales income will be over 10 billion CNY and tax will be more than 2 billion CNY.

Jinwang Bismuth is one of the major producers of bismuth metal and bismuth materials in the world. We are a corporation with a comprehensive bismuth industrial chain business from upstream ore to plants, refining and downstream bismuth oxide and bismuth salts.

Asian Metal: How has the bismuth metal market been in the past year?

Alex: Due to the continuous stockpiling in some exchanges, Chinese bismuth metal prices have increased sharply in the past year. The mainstream prices for bismuth ingots rose by around 60% from RMB100,000/t in August 2013 to around RMB160,000/t now.

Asian Metal: Recently, bismuth metal prices have been increasing with market participants claiming that the supply on the spot market was tight. What are the reasons for this?

Alex: The stockpiling in some exchanges in China is one of the major factors that has pushed bismuth metal prices up. The stocks of bismuth ingots in some exchanges have now reached over 14,000t, with a doubling of the total export volume of bismuth ingots throughout 2013. The stockpiling transformed the level of bismuth metal overcapacity in China, and also changed the relationship between supply and demand.

Asian Metal: Excluding the stockpiling in exchanges, is there any possibility of real demand seeing an increase this year?

Alex: As a green metal, more and more people realize the competitiveness of bismuth, especially in the developed countries. From the available statistics we deduce that demand for bismuth in the Chinese domestic market is likely to be stable in the remainder of the year, while demand from the overseas market will gradually increase, especially from the catalyst and alloy industries.

Asian Metal: What is the current state of the bismuth oxide market?

Alex: Chinese bismuth ingot prices have increased sharply in the past two months as a reaction to the tightening availability of materials on the spot market. Some exchanges continued stocking up on bismuth ingots and traders were also active in adding stocks. However, demand for bismuth oxide was weak and the market saw no stockpiling from exchanges or traders. Although bismuth oxide prices also increased, the pace lagged behind that of bismuth ingots. I do not think this situation will last for long.

Asian Metal: As we have learnt, Jinwang’s “Oxygen Rich Side-Blown Smelting Furnace Project” has achieved world leading status. Could you please introduce us to its advantages?

Alex: Firstly, the oxygen rich side-blown smelting furnace process and equipment were initially applied around the globe, solving difficulties in the continuous processing of Bi-based complex. It significantly improves the recycling rates of bismuth, lead, copper and silver. It is superior to traditional processes and the technical index is stable.

Secondly, the new process made the smelting furnace technique more adaptable to Bi-based raw materials, solving problems of low metal content and complicated ingredients of Bi-based complex. It achieved the enrichment and initial separation of valuable metals from the complex with less energy consumption and lower production costs.

Thirdly, producing acid with exhaust smoke realized the efficient usage of sulfur, basically wiping out any sulfurous pollution in the environment.

Fourthly, the project posted major breakthroughs in the Bi-based material oxygen rich side-blown smelting furnace process, design of new oxygen rich side-blown smelting furnaces, three-step control and reduction technology for oxidizing slag smelting. Eight patents had been applied in the process with four development patents, including the smelting furnace process of a kind of bismuth sulfate ore and utility model patent licensing.

On top of that, the project has distinguished economic and social benefits, acting as a great demonstration piece, popularizing applications within the industry.

Asian Metal: The Chinese government has placed greater importance on environmental protection. What measures has Jinwang Bismuth carried out?

Alex: People who used to visit our plant know that we place great importance on environmental protection. We are devoted to building a “Green Landscape-style Plant” and implementing clean production. As for technology, I introduced the advantages of the “oxygen rich side-Blown smelting furnace project” just now. With regard to administration, Jinwang Bimsuth has passed the ISO14001 Environmental Management System Certification and organizes internal and external inspections. The plant has achieved zero discharge of wastewater and its exhaust emissions meet the required standards. Jinwang Bismuth has invested around RMB40 million in environmental protection. We think this is useful both for long-term environmental protection and increasing our enterprise’s revenues.

Asian Metal: Are there any plants in business development for the near future?

Alex: We will place more emphasis on concentrate ore imports. We will begin to produce nanometer silver powder in September and the newly-built logistics company will also be in operation.

Asian Metal: Thanks for sharing your views and supporting Asian Metal. We wish Jinwang Bismuth a bright future.

Alex: Thank you.