12th Rare Earth Summit
May 27-28, 2021
Hangzhou, Zhejiang, China
11th Aluminum Raw Materials Summit
May 20-21, 2021
Hangzhou, Zhejiang, China
9th Magnesium Summit
April 15-16, 2021
Hangzhou, Zhejiang, China
13th World InBiGeGa Forum
March 25-26, 2021
Hangzhou, Zhejiang, China
7th World Antimony Forum
June 13-14, 2019
Changsha, Hunan, China
7th Refractory & Abrasive Materials Summit 2019
May 23-24, 2019
Qingdao, Shandong, China
10th Aluminum Raw Materials Summit
May 16-17, 2019
Zhengzhou, Henan, China
11th Rare Earth Summit
May 9-10, 2019
Qingdao, Shandong, China
8th Magnesium Summit
April 11-12, 2019
Zhuhai, Guangdong, China
12th World InBiGeGa Forum
March 14-15, 2019
Zhuhai, Guangdong, China
6th World Manganese & Selenium Forum
May 21-22, 2018
Hainan Sanya, China
Interview with Ms. Ma Feifei, General Manager of Shandong Jinao Technology Advanced Materials Co., Ltd
Shandong Jinao Technology Advanced Materials Co., Ltd (formerly known as the Shandong Jinao Chemical Co., Ltd.) was established in March 2005 with a registered capital of 15 million yuan, covering 69,930 square meters, hundreds of workers. In the cross of GUANGQING ROAD and XINBO ROAD, Chunliang Oil Production Plant hinterland, is specialized in the zirconium, titanium and other new materials research and development, production-oriented processing of technology advanced materials company, is a national macro-control advocates support the development of the imports of raw materials, production, as one of the high-tech industry . Since our company created, because of good faith to the credibility of the strong cultural, high-quality products, good service and excellent professional skills, become...
Zirconium silicate market will keep stable before the Spring Festival and be better after the Festival
----Interview with Ms. Ma Feifei, General Manager of Shandong Jinao Technology Advanced Materials Co., Ltd
Asian Metal: Thanks for accepting the interview. First of all, please talk about the company's operation.
Ma: The plant was running at full capacity for zirconium silicate in December, and was out of production late January，as we sell zirconium silicate mainly to ceramics plants which are usually out of production in January.
Asian Metal: As far as we know, zirconium silicate market has kept active in the second half of 2009 and the supply was unable to meet the demand. Therefore, some manufacturers in Fujian and Jiangsu Provinces plan to expand their outputs of zirconium silicate. Do you have plan to expand the capacity of zirconium silicate?
Ma: No. Through these years’ development, we have established long-term cooperation with several customers and monthly output of zirconium silicate can meet their demand. However, we may consider expanding output if we develop new customers. But I feel it is blind for us to expand output currently, seeing that the current profits of zirconium silicate are very low. Although the demand was strong in the second half of 2009, the profits are small due to the low prices caused by the fierce competition among companies. If companies continue to expand production, the supply is greater than demand, then profit margins will be getting smaller and smaller. In my opinion, the demand and supply of zirconium silicate generally keeps balance at present.
Asian Metal: Some of zirconium silicate manufacturers in Fujian are optimistic towards the market in 2010. According to the feedback of downstream ceramics plants, they think the demand for zirconium silicate may increase by around 20-30% in 2010. Therefore, some zirconium silicate producers prepare for expansion. What do you think of zirconium silicate market trend in 2010?
Ma: The trend will be influenced by national policies in 2010. The state's macroeconomic policy is to continue expanding domestic demand. From this point of view, zirconium silicate demand will increase. However, I think there is not large room for production expansion in 2010, although the market in 2010 is expected to become better than 2009. In the first half of 2009, a number of export-oriented companies were impacted by the financial crisis and zirconium silicate industry also saw slightly impact. However, the impact was not very great. The economic situation will be better in 2010, but I think it is not right time for a further capacity expansion in the current circumstance in consideration of the very intense competition in zirconium silicate industry.
Asian Metal: Indeed, the profits were quite substantial for zirconium silicate a few years ago. But a number of new plants have been built in the past years, and the entire production capacity increased a lot. However, the demand increase from downstream market did not catch up this rate, so manufacturers have to lower prices to attract consumers, and even there exist some quality issues. The content of ZrO2 of zirconium silicate should be at or above 63.5% in general, but some manufacturers sell zirconium silicate with around 50% for ZrO2, and the prices are only RMB7,000-8,000/t (USD1,025-1,172/t), which has a certain impact on sales of zirconium silicate with high content of ZrO2. In this regard, what's your view?
Ma: According to the ceramics product structure, some ceramic enterprises need zirconium silicate with the ZrO2 of about 50% or 60%. In order to lower production cost, some ceramics enterprises use low content zirconium silicate to produce low grade ceramics products. However, ceramics enterprises must use zirconium silicate of more than 65% to produce high-grade ceramic products which are required to reach the effect of whitening and brightening for glaze, and costs increase as well. Therefore, it is the fact that different grades of ceramic products require different grades of zirconium silicate, not quality issues.
We mainly produce high grade zirconium silicate with the content of 65% for ZrO2, but we sometimes produce low content zirconium silicate according to requirements of individual customers. The mentioned issue does exist, but it is a very individual phenomenon. The whole zirconium silicate industry is in orderly competition.
Asian Metal: In some regions, taking into account the cost, the downstream customers prefer zirconium silicate with a low price, so that high content zirconium silicate with high sales price does not sell well sometimes, so some manufacturers report this situation.
Ma: I think zirconium silicate price in Shandong Province is slightly higher than in the South China. I have discussed the ZrO2 content issue with some bosses from the South China in some conferences. It is pointed that downstream manufacturers require the content of zirconium silicate with 50%, 55% or 60% for ZrO2, and enterprises should produce the material according to customers requirement.
Asian Metal: Could you talk about the macroeconomic trend?
Ma: At present, China's economy is at a crucial period of being stable and getting better. The next step is to maintain continuity, stability and sustainability of macro-economic policy, to seize the favorable opportunities to deploy and promote the important areas of reform, to promote long-term stable and rapid economic development and social progress.
Asian Metal: In addition to zirconium silicate, do you produce other zirconium products?
Ma: No, we mainly zirconium silicate and zircon powder, and sell to ceramics, casting and refractory plants.
Asian Metal: Do you have plan to develop other zirconium products in the short term?
Ma: No.
Asian Metal: The company has kept running at full capacity in the past months, are there large inventories?
Ma: There were nearly no inventories in December.
Asian Metal: What is the monthly capacity of zirconium silicate?
Ma: About 1,500 tons.
Asian Metal: Ceramic industry has been active in the second half of 2009 , and zirconium silicate and glaze plants are optimistic about the market in 2010. Besides ceramics industry, the company also sell zirconium silicate to precision casting and refractory plants. What do you think of the trend of casting and refractory industries?
Ma: In the first half of 2009, affected by economic crisis, the market was slow. In the second half of 2009, many downstream plants gradually come back to normal production. I think the casting industry will be much better in 2010. We do not have many customers from refractory industry. However, I know that many refractory products are export-oriented, and refractory industry was impacted a lot in the first half of 2009. I think the market in 2010 may become better.
Asian Metal: What do you think of the zircon sand trend?
Ma: We have stable suppliers of zircon sand. Now the zircon sand price is relatively stable, and there will be no significant changes before the Spring Festival.
Asian Metal: Several large suppliers claimed that they will keep prices of zircon sand stable before the Spring Festival in China, but they will increase prices after the Spring Festival.
Ma: It is said that zircon sand prices will go up in the second quarter of 2010. The customers have stocked zircon sand before the Spring Festival. Our plant will come to normal production until March and we will consume stocks of raw materials in March. Every year, most consumers go back to the market to purchase raw material in April, and suppliers usually raise prices during purchasing peak.
Asian Metal: Do you think zircon sand prices will rise sharply?
Ma: I think it is unlikely for prices to go up a lot, as foreign suppliers will also analyze China's economic situation, the supply and demand from consumers each quarter. They will adjust their supply plan to ensure downstream plants in normal production. I think there will be no substantial adjustment for zircon sand price.
Asian Metal: Do you have any good suggestions on the development of zirconium silicate industry?
Ma: We hope that zirconium silicate firms can form alliances and devote to the development of zirconium industry, and hope the nation can carry out some beneficial policies on the development of zirconium and titanium industries. Only enterprises develop, and then reward the society!
Ma: The plant was running at full capacity for zirconium silicate in December, and was out of production late January，as we sell zirconium silicate mainly to ceramics plants which are usually out of production in January.
Asian Metal: As far as we know, zirconium silicate market has kept active in the second half of 2009 and the supply was unable to meet the demand. Therefore, some manufacturers in Fujian and Jiangsu Provinces plan to expand their outputs of zirconium silicate. Do you have plan to expand the capacity of zirconium silicate?
Ma: No. Through these years’ development, we have established long-term cooperation with several customers and monthly output of zirconium silicate can meet their demand. However, we may consider expanding output if we develop new customers. But I feel it is blind for us to expand output currently, seeing that the current profits of zirconium silicate are very low. Although the demand was strong in the second half of 2009, the profits are small due to the low prices caused by the fierce competition among companies. If companies continue to expand production, the supply is greater than demand, then profit margins will be getting smaller and smaller. In my opinion, the demand and supply of zirconium silicate generally keeps balance at present.
Asian Metal: Some of zirconium silicate manufacturers in Fujian are optimistic towards the market in 2010. According to the feedback of downstream ceramics plants, they think the demand for zirconium silicate may increase by around 20-30% in 2010. Therefore, some zirconium silicate producers prepare for expansion. What do you think of zirconium silicate market trend in 2010?
Ma: The trend will be influenced by national policies in 2010. The state's macroeconomic policy is to continue expanding domestic demand. From this point of view, zirconium silicate demand will increase. However, I think there is not large room for production expansion in 2010, although the market in 2010 is expected to become better than 2009. In the first half of 2009, a number of export-oriented companies were impacted by the financial crisis and zirconium silicate industry also saw slightly impact. However, the impact was not very great. The economic situation will be better in 2010, but I think it is not right time for a further capacity expansion in the current circumstance in consideration of the very intense competition in zirconium silicate industry.
Asian Metal: Indeed, the profits were quite substantial for zirconium silicate a few years ago. But a number of new plants have been built in the past years, and the entire production capacity increased a lot. However, the demand increase from downstream market did not catch up this rate, so manufacturers have to lower prices to attract consumers, and even there exist some quality issues. The content of ZrO2 of zirconium silicate should be at or above 63.5% in general, but some manufacturers sell zirconium silicate with around 50% for ZrO2, and the prices are only RMB7,000-8,000/t (USD1,025-1,172/t), which has a certain impact on sales of zirconium silicate with high content of ZrO2. In this regard, what's your view?
Ma: According to the ceramics product structure, some ceramic enterprises need zirconium silicate with the ZrO2 of about 50% or 60%. In order to lower production cost, some ceramics enterprises use low content zirconium silicate to produce low grade ceramics products. However, ceramics enterprises must use zirconium silicate of more than 65% to produce high-grade ceramic products which are required to reach the effect of whitening and brightening for glaze, and costs increase as well. Therefore, it is the fact that different grades of ceramic products require different grades of zirconium silicate, not quality issues.
We mainly produce high grade zirconium silicate with the content of 65% for ZrO2, but we sometimes produce low content zirconium silicate according to requirements of individual customers. The mentioned issue does exist, but it is a very individual phenomenon. The whole zirconium silicate industry is in orderly competition.
Asian Metal: In some regions, taking into account the cost, the downstream customers prefer zirconium silicate with a low price, so that high content zirconium silicate with high sales price does not sell well sometimes, so some manufacturers report this situation.
Ma: I think zirconium silicate price in Shandong Province is slightly higher than in the South China. I have discussed the ZrO2 content issue with some bosses from the South China in some conferences. It is pointed that downstream manufacturers require the content of zirconium silicate with 50%, 55% or 60% for ZrO2, and enterprises should produce the material according to customers requirement.
Asian Metal: Could you talk about the macroeconomic trend?
Ma: At present, China's economy is at a crucial period of being stable and getting better. The next step is to maintain continuity, stability and sustainability of macro-economic policy, to seize the favorable opportunities to deploy and promote the important areas of reform, to promote long-term stable and rapid economic development and social progress.
Asian Metal: In addition to zirconium silicate, do you produce other zirconium products?
Ma: No, we mainly zirconium silicate and zircon powder, and sell to ceramics, casting and refractory plants.
Asian Metal: Do you have plan to develop other zirconium products in the short term?
Ma: No.
Asian Metal: The company has kept running at full capacity in the past months, are there large inventories?
Ma: There were nearly no inventories in December.
Asian Metal: What is the monthly capacity of zirconium silicate?
Ma: About 1,500 tons.
Asian Metal: Ceramic industry has been active in the second half of 2009 , and zirconium silicate and glaze plants are optimistic about the market in 2010. Besides ceramics industry, the company also sell zirconium silicate to precision casting and refractory plants. What do you think of the trend of casting and refractory industries?
Ma: In the first half of 2009, affected by economic crisis, the market was slow. In the second half of 2009, many downstream plants gradually come back to normal production. I think the casting industry will be much better in 2010. We do not have many customers from refractory industry. However, I know that many refractory products are export-oriented, and refractory industry was impacted a lot in the first half of 2009. I think the market in 2010 may become better.
Asian Metal: What do you think of the zircon sand trend?
Ma: We have stable suppliers of zircon sand. Now the zircon sand price is relatively stable, and there will be no significant changes before the Spring Festival.
Asian Metal: Several large suppliers claimed that they will keep prices of zircon sand stable before the Spring Festival in China, but they will increase prices after the Spring Festival.
Ma: It is said that zircon sand prices will go up in the second quarter of 2010. The customers have stocked zircon sand before the Spring Festival. Our plant will come to normal production until March and we will consume stocks of raw materials in March. Every year, most consumers go back to the market to purchase raw material in April, and suppliers usually raise prices during purchasing peak.
Asian Metal: Do you think zircon sand prices will rise sharply?
Ma: I think it is unlikely for prices to go up a lot, as foreign suppliers will also analyze China's economic situation, the supply and demand from consumers each quarter. They will adjust their supply plan to ensure downstream plants in normal production. I think there will be no substantial adjustment for zircon sand price.
Asian Metal: Do you have any good suggestions on the development of zirconium silicate industry?
Ma: We hope that zirconium silicate firms can form alliances and devote to the development of zirconium industry, and hope the nation can carry out some beneficial policies on the development of zirconium and titanium industries. Only enterprises develop, and then reward the society!