Antai Zirconium: a competitive force in zirconium silicate industry

Asian Metal: Mr. Zhang, Thank you for agreeing to this interview and your support to Asian Metal. Could you please give us a brief introduction about the main business of your company?

Zhang: Antai Zirconium focuses on zirconium silicate and zircon sand. After ten years of sustained and steady development, we process a large number of advanced semi-automatization production equipments with 20 large ball mills and 130 shakers, having capacities of 60,000tpy and 50,000tpy for zirconium silicate and zircon sand respectively. With regard to other minerals, we could produce 5,000 tons of rutile, 2,000 tons of monazite and 8,000 tons of ilmenite per year. Antai zirconium industry chairman Mr Su Anjing was appointed China Nonferrous Metals Industry Association chairman of committee of zirconium silicate.

Asian Metal: Since this year, Chinese zirconium silicate prices keep decreasing due to poor demand, what do you think of the market trend before the Spring Festival?

Zhang: Even though demand from upstream ceramic industry remains poor, but we expect that the prices would hover in the low levels before the Spring Festival. With energy prices having doubled increase and auto transportation fees rising by 33% against early this year, the production costs of zirconium silicate keep climbing, resulting in quite thin profits. Hence, I think there are very few chances for zirconium silicate prices to go down further.

Asian Metal: Could you please share your opinions on zirconium silicate market next year?

Zhang: In 2017, we anticipated that zirconium silicate prices would bottom out affected by raw material zircon sand price uptrend, rising logistics costs and energy coal prices as well as RMB depreciation. In addition, downstream ceramic producers continue to move up prices for ceramic tiles, which may contribute to the upward tendencies for zirconium silicate prices next year.

Asian Metal: In April 2016, your company has expanded zirconium silicate capacity by 15,000 tons to 60,000tpy. Do you intend to expand further next year?

Zhang: In April 2016, our company added 12 ball mills on the previous 20 ones with the total capacity of 60,000tpy. Now we are commissioning the capacity step by step. In 2017, we have plans to add another 12 ball mills with the capacity of around 90,000tpy, but it depends on the market situations.

Asian Metal: Current zirconium silicate market sees meager profits and poor demand, why does your company still want to increase capacity?

Zhang: with our MSP, with the processing capacity of 12,000 tons for zirconium concentrates, putting into production, we would ramp up zircon sand production substantially. Expanding our zirconium silicate capacity is one of the profitable ways to deal with the increased zircon sand output. Besides, we could have the scale benefits by this way.

Asian Metal: When do you begin to expand your MSP? Do you intend to sell the rising zircon sands to the market?

Zhang: Our new MSP, located in Guanqiao Town, Quanzhou City, Fujian Province, has been built from May. Till now, we has installed 220 shakers, matched magnetic and electric separation equipment. Environmental assessment works has completed. The zircon sand produced by the new MSP, with a capacity of 120,000tpy, would be totally used by ourselves to produce zirconium silicate.

Asian Metal: What are the business directions for your company?

Zhang: We hope our company to occupy a competitive position in zirconium silicate industry, to become a powerful main force in Chinese manufacturing zirconium industry. At the same time, we would pay more attention to product quality on aspects of whiteness, fineness, package etc., to develop our own zirconium silicate brand.

Asian Metal: Thanks for you again to accept our interview. Wish you every success in your business.