Rich experience and high-quality of ferrotitanium products support us to develop stably further

Asian Metal: Thanks for accepting the interview of Asian Metal, Nikita! Would you please introduce your company firstly?

Nikita: Our company is called UralSpetsplav Ltd. The plant is located on the territory of the Russian Federation in one of the main industrial cities of Chelyabinsk. The enterprise has been engaged in the production of ferrotitanium since 1998. We are one of the largest Russian producers of ferrotitanium. Our products are mainly used for the production of stainless steel. For a long time the main consumer of the plant's products was Europe, deliveries were made to such plants as Thyssenkrupp, Scandinavian Steel AB. Also at certain time periods, deliveries were made for such enterprises as Outokumpu, AMET, Mechel, FSUE Votkinskiy Zavod, ROSTEHKOM and others.

Asian Metal: Would you like to give a brief introduction of Russian ferrotitanium market?

Nikita: The Russian market of ferrotitanium is quite competitive, and is directed mainly at European consumers. In Russia there are about 5-7 main producers of ferrotitanium. Due to the difficult economic situation in the country, manufacturers face many challenges. In recent times, a tax was introduced to purchase scrap of titanium, which adversely affected the producers.

Asian Metal: As you mentioned that a tax was introduced to purchase titanium scrap, what it means?

Nikita: We need to pay Russian VAT for titanium scrap since 1 January 2018.

Asian Metal: As far as I know, as European buyers were inactive in purchasing ferrotitanium in the first half of this year, the prices stayed at low levels for long time and only resumed in recent month. How about your own production now?

Nikita: The main product of UralSpetsplav is FeTi-70. The average productivity per month is 200-300 tons. Our enterprise does not stand still and regularly expands the range of products, for example, we manufacture brass bars by the method of continuous casting, the productivity is about 200 tons per month. The main consumers of brass bars for us were Chinese and Turkish companies. Just recently, the production of high-speed steel was launched.

Asian Metal: What are the advantages of your company?

Nikita: The main advantages of our company are high-quality products, reasonable price and stability of supply. To check the quality of products, we have a special spectral laboratory Spectromax. It allows us to track with very high accuracy the chemical composition of our products. Our ferrotitanium corresponds to GOST 4761-91, which is an important indicator of quality.

The average periodicity of supply is 1-2 weeks. We are the first company in Russia who started exporting FeTi-70 to China. Throughout the past year, the bulk of our products have been shipped to Chinese consumers, due to this we have gained good experience working with China, proved our competitive ability and deserved a high level of trust in the face of Chinese companies.

Asian Metal: What are the main problems before you now?

Nikita: At the moment, the main problem of the company is the lack of the necessary amount of raw materials for the production of ferrotitanium. Due to the instability of the country's economy and the ferrotitanium market, titanium scrap owners are reluctant to sell their material, in anticipation of more favorable prices. Also, a certain problem is the introduction of a tax on the purchase of raw materials, which limits our ability to purchase titanium scrap from abroad at high prices.

Asian Metal: Prices for ferrotitanium 70%min have increased obviously in late August and early September. What is the opinion about the reasons for the increase?

Nikita: Personally, my assumption is that the main reason for the increase in the price of ferrotitanium is the artificial creation of a deficit by European companies, in order to extract superprofits and remove non-competitive producers.

Asian Metal: What do you think about the prospects of your company and your market?

Nikita: Prospects of our company are very large, for 20 years of work we proved ourselves as a proven and high-quality manufacturer, we survived all crises occurring in the country, and in Russia there were a lot of crises. Many competitors during our work, left the market without sustaining competition. Therefore, I believe that further cooperation with China will only have a positive impact on the development of both sides.

Asian Metal: Thank you very much for this interview with Asian Metal, and may your business thrive.