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 Shi Yusheng, Assistant General Manager of Chongyi Zhangyuan Tunsten Co., Ltd
Chongyi Zhangyuan Tungsten Co., Ltd. was founded in 2000. Its business range covers from mining, dressing, metallurgical processing, powder producing, producing of cemented carbide and tools, producing and deep processing of tungsten alloy as well as the hydraulic power generating. Since 2000, the company has been insisting on “benefit from resource, relying on science and technology, people-oriented and top with trust” as its business philosophy, taking “safe, harmonious, efficient, innovation” as the business goals, adhering to independent innovation with the “Production, Education & Research” connected with the new technology development.
Shi Yusheng: Optimistic outlook for high value-added cemented carbide market
----Interview with Shi Yusheng, Assistant General Manager of Chongyi Zhangyuan Tunsten Co., Ltd
Asian Metal: First thank you very much for your support to Asian Metal, and could you please introduce the current state of your company?
Shi: The company has more than 3,000 staffs, and has abundant resources with six mines possessing exploration right, four mines with mining right and five plants for tungsten smelting and advanced processing, and has a production capacity of 10,000t of APT, 6,000t of tungsten powder, 6,000t of tungsten carbide powder, and 1,000t of cemented carbide products every year. The company is the Chairman Unit of China Tungsten Association, the Vice-Chairman Unit of China Cemented Carbide Association, the “National High-tech Enterprise” and the “National Innovative Enterprise” of third batch. Chinese Academy of Geological Sciences, Central South University, Jiangxi Science and Engineering University, southern of Ganzhou Academy of Sciences set post-doctoral workstation, post-doctoral studying base, postgraduate education and innovation base, tungsten research institution and Jiangxi tungsten products engineering and technological research center based on the technology center of our company. The company became the first listed tungsten enterprise in Jiangxi as it listed on Shenzhen Stock Exchange on March 31, 2010.
Asian Metal: The weakened demand for cemented carbide affected by dim economy over the past year has resulted in low operating rates from upstream APT and tungsten carbide powder manufacturers. How’s the current production of Gannan-based manufacturers? What do you think of the market in Q3 and Q4?
Shi: Nearly half of Gannan-based APT producers halted production entering July and the operating rate of tungsten carbide powder producing in my company is somewhat affected. The economy is miserable globally this year as European economy runs sluggish due to the debt crisis and demand from Japan and South Korea dipped by 30-40% compared to those in previous years impacted by the nuclear accident in Japan. The economic growth slowed down starting from May in USA. End user demand decreased greatly due to dim domestic economy. We do not see obvious improvement in Q3 and we hope it could be better in Q4.
Asian Metal: What factors do you think may take effect together to stimulate rebounds in tungsten market?
Shi: Producing cost and investment in environmental production, works safety and human resources increased in mines in recent years. Suppliers would not like to sell profitless tungsten concentrate which price is close to producing cost in some mines, so there are limited decreasing rooms for tungsten concentrate price. Idle fund has entered the market and its speculation in input materials stabilized tungsten concentrate price to some extent. However, the sustainable development of the industry and the market eventually need the support from terminal market which depends on how international and domestic economy recovers.
Asian Metal: Previously there were news saying the government will purchase and store tungsten. What do you think of the news? Can the purchasing support tungsten market?
Shi: The government is considering adjusting strategic metal reserve plan as rare earth, tungsten. Purchasing is good for sustainable development of the industry in the long-run, especially when foreign end-users and alloy clients want stable raw material sources and small price changes as purchasing may stabilize tungsten price. Producers like our company also hope the industry to develop healthily.
Asian Metal: What are the advantages of being listed?
Shi: To be listed is already to confirm the company’s comprehensive power and sustainable development abilities. A listed company is able to finance which is beneficial to the strategic array and sustainable development. It is easier for a listed company to build brand influence thus to reveal integrated power. In addition, a listed company shoulders more responsibilities and obligations for public investors and the society.
Asian Metal: What opportunities and challenges have your company faced since listed? What’s your company’s direction and plans over the next few years?
Shi: The company will invest more in cemented carbide production. Aoketai Tools Technology Co., Ltd newly built in Ganzhou is establishing a high performance and high precision cemented carbide coating blade production line of “world class technology and equipments, highly automatic” for “world class products”. The project has a total investment of RMB559 million in Phase Ⅰ and an annual production of 100t (i.e. 10 million blades) when in pilot production after construction is completed in September, 2012. The future developing strategic is “utilizing resources scientifically for green smelting and deeply processed products”, which is based on cyclic utilization and development of resources and aims at manufacturing high value-added tungsten processed products of high performance and high precision so as to constantly upgrade the company’s core competitiveness, making Zhuangyuan Tungsten a domestically leading and internationally competitive tungsten enterprise engaging in tungsten ore exploring, mining, selecting, smelting, deep processing coordinated with developments in related industries.
Asian Metal: We learnt that your company has cemented carbide production lines in Chongyi-based plants, so how’s the production there? What is the superior product of your company currently?
Shi: The production line has a capacity of 1,000tpy and it was around 700tpy last year, mainly producing traditional blades, mineral products and ball gear, etc. After the Ganzhou-based plant is built, traditional production will be reserved but adjusted to serve various demands. Numerical controlled blades are mainly applied to high precision machining such as auto processing industry, precision instrument manufacturing. They have high added value and strict quality requirements. Our core product is tungsten powder, and our output ranks second domestically according to China Tungsten Association. The cemented carbide project also weighs on high quality cemented carbide products producing.
Asian Metal: What are those specific policies the state has to support high value-added cemented carbide producing in order to help the resource better transfers into end product?
Shi: Some alloy products enjoy tax refund in exporting and the rear-end products are not restricted by export quotas. Ministries and commissions like the Ministry of Industry and Information Technology provided funds for six major projects on key materials development and application. The technology reforming project for high performance and high precision cemented carbide coating blade got approval from the evaluation by exports of national grade and obtained RMB30 million of central special supporting fund.
Asian Metal: Thanks very much for your time and wish your company better development!
Shi: Thanks!
Shi: The company has more than 3,000 staffs, and has abundant resources with six mines possessing exploration right, four mines with mining right and five plants for tungsten smelting and advanced processing, and has a production capacity of 10,000t of APT, 6,000t of tungsten powder, 6,000t of tungsten carbide powder, and 1,000t of cemented carbide products every year. The company is the Chairman Unit of China Tungsten Association, the Vice-Chairman Unit of China Cemented Carbide Association, the “National High-tech Enterprise” and the “National Innovative Enterprise” of third batch. Chinese Academy of Geological Sciences, Central South University, Jiangxi Science and Engineering University, southern of Ganzhou Academy of Sciences set post-doctoral workstation, post-doctoral studying base, postgraduate education and innovation base, tungsten research institution and Jiangxi tungsten products engineering and technological research center based on the technology center of our company. The company became the first listed tungsten enterprise in Jiangxi as it listed on Shenzhen Stock Exchange on March 31, 2010.
Asian Metal: The weakened demand for cemented carbide affected by dim economy over the past year has resulted in low operating rates from upstream APT and tungsten carbide powder manufacturers. How’s the current production of Gannan-based manufacturers? What do you think of the market in Q3 and Q4?
Shi: Nearly half of Gannan-based APT producers halted production entering July and the operating rate of tungsten carbide powder producing in my company is somewhat affected. The economy is miserable globally this year as European economy runs sluggish due to the debt crisis and demand from Japan and South Korea dipped by 30-40% compared to those in previous years impacted by the nuclear accident in Japan. The economic growth slowed down starting from May in USA. End user demand decreased greatly due to dim domestic economy. We do not see obvious improvement in Q3 and we hope it could be better in Q4.
Asian Metal: What factors do you think may take effect together to stimulate rebounds in tungsten market?
Shi: Producing cost and investment in environmental production, works safety and human resources increased in mines in recent years. Suppliers would not like to sell profitless tungsten concentrate which price is close to producing cost in some mines, so there are limited decreasing rooms for tungsten concentrate price. Idle fund has entered the market and its speculation in input materials stabilized tungsten concentrate price to some extent. However, the sustainable development of the industry and the market eventually need the support from terminal market which depends on how international and domestic economy recovers.
Asian Metal: Previously there were news saying the government will purchase and store tungsten. What do you think of the news? Can the purchasing support tungsten market?
Shi: The government is considering adjusting strategic metal reserve plan as rare earth, tungsten. Purchasing is good for sustainable development of the industry in the long-run, especially when foreign end-users and alloy clients want stable raw material sources and small price changes as purchasing may stabilize tungsten price. Producers like our company also hope the industry to develop healthily.
Asian Metal: What are the advantages of being listed?
Shi: To be listed is already to confirm the company’s comprehensive power and sustainable development abilities. A listed company is able to finance which is beneficial to the strategic array and sustainable development. It is easier for a listed company to build brand influence thus to reveal integrated power. In addition, a listed company shoulders more responsibilities and obligations for public investors and the society.
Asian Metal: What opportunities and challenges have your company faced since listed? What’s your company’s direction and plans over the next few years?
Shi: The company will invest more in cemented carbide production. Aoketai Tools Technology Co., Ltd newly built in Ganzhou is establishing a high performance and high precision cemented carbide coating blade production line of “world class technology and equipments, highly automatic” for “world class products”. The project has a total investment of RMB559 million in Phase Ⅰ and an annual production of 100t (i.e. 10 million blades) when in pilot production after construction is completed in September, 2012. The future developing strategic is “utilizing resources scientifically for green smelting and deeply processed products”, which is based on cyclic utilization and development of resources and aims at manufacturing high value-added tungsten processed products of high performance and high precision so as to constantly upgrade the company’s core competitiveness, making Zhuangyuan Tungsten a domestically leading and internationally competitive tungsten enterprise engaging in tungsten ore exploring, mining, selecting, smelting, deep processing coordinated with developments in related industries.
Asian Metal: We learnt that your company has cemented carbide production lines in Chongyi-based plants, so how’s the production there? What is the superior product of your company currently?
Shi: The production line has a capacity of 1,000tpy and it was around 700tpy last year, mainly producing traditional blades, mineral products and ball gear, etc. After the Ganzhou-based plant is built, traditional production will be reserved but adjusted to serve various demands. Numerical controlled blades are mainly applied to high precision machining such as auto processing industry, precision instrument manufacturing. They have high added value and strict quality requirements. Our core product is tungsten powder, and our output ranks second domestically according to China Tungsten Association. The cemented carbide project also weighs on high quality cemented carbide products producing.
Asian Metal: What are those specific policies the state has to support high value-added cemented carbide producing in order to help the resource better transfers into end product?
Shi: Some alloy products enjoy tax refund in exporting and the rear-end products are not restricted by export quotas. Ministries and commissions like the Ministry of Industry and Information Technology provided funds for six major projects on key materials development and application. The technology reforming project for high performance and high precision cemented carbide coating blade got approval from the evaluation by exports of national grade and obtained RMB30 million of central special supporting fund.
Asian Metal: Thanks very much for your time and wish your company better development!
Shi: Thanks!