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 Cui Yuming, Vice-General Manager of Jiangxi Yaosheng Industry and Trade Development Co., Ltd
Jiangxi Yaosheng Industry and Trade Development Co., Ltd, established in October, 1999 and located in Chongyi County, Ganzhou City, Jiangxi Province, is a private tungsten enterprise that has obtained export right with businesses including mining, mineral separation, processing, smelting, powder producing and trading. The company has 6 mines, 5 prospection projects and 4 processing plants.
Cui Yuming: Tungsten demand lackluster, Q3 uptick unlikely
----Interview with Cui Yuming, Vice-General Manager of Jiangxi Yaosheng Industry and Trade Development Co., Ltd
Asian Metal: Nice to see you, Mr. Cui! Thank you for accepting this interview. Please briefly introduce your company and development plan.
Cui: The company has formed a fine and deep processing line in processing tungsten products with an annual capacity of 8,000 tons for APT, half of which is consumed by ourselves for production of downstream products. We can also produce 6,000 tons of tungsten oxide, 4,000 tons of tungsten powder, 2,500 tons of tungsten carbide powder and power products ranging from 0.6μm to 45μm per year. Cemented carbide line will be put into operation at the end of this year and annual capacity will be 200 tons in stage one.
Asian Metal: Tungsten market runs slowly and many APT producers in south of Ganzhou have suspended production due to depressed economy. What is your production status at present?
Cui: Price of wolframite 60%min is at RMB103,000/t (USD271/mtu) while concluded price of APT is at RMB162,000/t (USD289/mtu), which means nearly no profits are left for APT producer. Our APT line ceased production on August 1st and whether to resume production depends on market situation in September. Only 7 of our 18 tungsten powder reduction furnaces are running at the moment. It's more difficult to get orders because the market is more sluggish in August. Therefore, inventories are growing and the price will not rebound in the short-term.
Asian Metal: The tungsten market has remained dim with falling prices since last Q4. So what is your opinion on the market in Q3 and Q4.
Cui: Prices for tungsten products have fallen since last September. The price for tungsten concentrate rose in April, lasting for no more than one month without support from demand. There is little possibility for the market to rebound in Q3 and Q4 owing to lack of demand. Nevertheless, the falling has been hindered by larger force due to the cost. The comprehensive cost for wolframite 60%min stands at about RMB70,000-80,000/t (USD184-210/mtu) with moving figures at RMB103,000-105,000/t (USD271-276/mtu) and VAT excluded figure at RMB88,000/t (USD231/mtu), close to the cost. Therefore, no possibility is projected for the wolframite 60%min to fall below RMB10,000/t (USD263/mtu).
Asian Metal: What kind of factors can stimulate the market to rebound?
Cui: Investment is a force supporting the market which cannot be belittled judging from the current market. However, increment in demand can stabilize the market from a long term. Overcapacity is one of the factors that resulting in the weak market--- the annual output of total 40 APT producers comes up to 200,000t while the demand is only about 60,000t per year. The tungsten market can be driven by improvements of macro economy, adjustment of demand and supply, improved real estate market and industrial policy.
Asian Metal: It is said that the government will purchase and store tungsten. How do you view on this kind of policies?
Cui: The purchasing and storage is a long-term development strategy for the industry that will help stabilize tungsten products prices. There are no specific policies released yet. The State Council helps the rise and development of southern Jiangxi, formerly the central Soviet area, aiming at making the place an internationally competitive industrial base of rare earth and tungsten, at transferring the resource superiority into industrial superiority, so as to promoting the development of tungsten and rare earth industries.
Asian Metal: What advantages does your company have? Please share with us about the listing progress of your company.
Cui: The biggest advantage we have is resource superiority. We have six mines and we further expand the industrial chain, add cemented carbide line and improve value added products through mining, selecting, smelting based on these mines. We have achieved the shareholding reform and will rename “Jiangxi Yaosheng Tungsten LLC. at the end of this month as we are promoting the listing of the company with full effort.
Asian Metal: Thanks very much for your time and wish your company better development!
Cui: Thank you!
Cui: The company has formed a fine and deep processing line in processing tungsten products with an annual capacity of 8,000 tons for APT, half of which is consumed by ourselves for production of downstream products. We can also produce 6,000 tons of tungsten oxide, 4,000 tons of tungsten powder, 2,500 tons of tungsten carbide powder and power products ranging from 0.6μm to 45μm per year. Cemented carbide line will be put into operation at the end of this year and annual capacity will be 200 tons in stage one.
Asian Metal: Tungsten market runs slowly and many APT producers in south of Ganzhou have suspended production due to depressed economy. What is your production status at present?
Cui: Price of wolframite 60%min is at RMB103,000/t (USD271/mtu) while concluded price of APT is at RMB162,000/t (USD289/mtu), which means nearly no profits are left for APT producer. Our APT line ceased production on August 1st and whether to resume production depends on market situation in September. Only 7 of our 18 tungsten powder reduction furnaces are running at the moment. It's more difficult to get orders because the market is more sluggish in August. Therefore, inventories are growing and the price will not rebound in the short-term.
Asian Metal: The tungsten market has remained dim with falling prices since last Q4. So what is your opinion on the market in Q3 and Q4.
Cui: Prices for tungsten products have fallen since last September. The price for tungsten concentrate rose in April, lasting for no more than one month without support from demand. There is little possibility for the market to rebound in Q3 and Q4 owing to lack of demand. Nevertheless, the falling has been hindered by larger force due to the cost. The comprehensive cost for wolframite 60%min stands at about RMB70,000-80,000/t (USD184-210/mtu) with moving figures at RMB103,000-105,000/t (USD271-276/mtu) and VAT excluded figure at RMB88,000/t (USD231/mtu), close to the cost. Therefore, no possibility is projected for the wolframite 60%min to fall below RMB10,000/t (USD263/mtu).
Asian Metal: What kind of factors can stimulate the market to rebound?
Cui: Investment is a force supporting the market which cannot be belittled judging from the current market. However, increment in demand can stabilize the market from a long term. Overcapacity is one of the factors that resulting in the weak market--- the annual output of total 40 APT producers comes up to 200,000t while the demand is only about 60,000t per year. The tungsten market can be driven by improvements of macro economy, adjustment of demand and supply, improved real estate market and industrial policy.
Asian Metal: It is said that the government will purchase and store tungsten. How do you view on this kind of policies?
Cui: The purchasing and storage is a long-term development strategy for the industry that will help stabilize tungsten products prices. There are no specific policies released yet. The State Council helps the rise and development of southern Jiangxi, formerly the central Soviet area, aiming at making the place an internationally competitive industrial base of rare earth and tungsten, at transferring the resource superiority into industrial superiority, so as to promoting the development of tungsten and rare earth industries.
Asian Metal: What advantages does your company have? Please share with us about the listing progress of your company.
Cui: The biggest advantage we have is resource superiority. We have six mines and we further expand the industrial chain, add cemented carbide line and improve value added products through mining, selecting, smelting based on these mines. We have achieved the shareholding reform and will rename “Jiangxi Yaosheng Tungsten LLC. at the end of this month as we are promoting the listing of the company with full effort.
Asian Metal: Thanks very much for your time and wish your company better development!
Cui: Thank you!