Asian Metal: Thank you very much for joining our interview, Mr. Wang, and please introducer COSDA briefly.

Mr. Wang: Yunnan COSDA Metallurgies Co., Ltd established in 1993, and we are mainly doing ferrophosphorus (FeP) processing and trading in Chinese domestic and overseas aboard market. We can supply standard FeP P 24%min, Si 3%max, C 1%max, and FeP Ti 1%max, Ti 0.5%max and Ti0.05%max and other various FeP according to customized specification.

Asian Metal: What's your annual sales volume of ferrophosphorus (FeP)? How does domestic and overseas trading volume account respectively? Please give some quotations.

Mr. Wang: We sell about 20,000 tons a year with domestic trade accounting for about 70 % and export for about 30 %. The common FeP accounts about 60 % and supr-low titanium phosphorous about 40 %. Currently we supply to Baosteel, Shougang, Angang, and Pangang etc. For overseas markets, we offered USD360/t FOB China for common FeP, and USD420/t FOB China for FeP Ti1 %max, and USD430/t FOB China for FeP Ti0.5 %max (if there is no other element requirement) . We are mainly concentrated in the United States, Japan, and European markets.

Asian Metal: How do you evaluate the relationship between supply and demand in China?

Mr. Wang: At present, FeP are wildly used in steel mills and foundry factories, and the annual consumption capacity is about 40,000 tons. Common FeP is mainly for general steel mills, while FeP with low-titanium is for special steel and silicon steel mills. Currently, it's oversupplied in China for common FeP, but due to the updated skills of special steel mills, the demand of super low titanium FeP is obviously increasing.

Asian Metal: The yellow phosphorus plants were exposed about the water-pollution issue, leading to the tight supply of the raw material of yellow phosphorus two months ago. How do you evaluate the current supply of yellow phosphorus? How many of them are producing now?

Mr. Wang: The yellow phosphorus plants were exposed due to the unqualified-water discharge, leading to most yellow phosphorus plants suspended production two months ago.

After equipment rectification for over one month, half of them met the standard and resumed production one after another. There are about 40 yellow phosphorus plants in total in China, and about half of them are currently in production, and most of them who produce common FeP are located in Yunnan, Guizhou, Sichuan, Hunan, Hubei and other regions. At present, the supply of common FeP is sufficient, but the supply of low-titanium FeP (Ti 0.5 % max) is tight. Due to the scarcity of supplies from upstream plants, the low-titanium FeP's price has been rising since the beginning of the year, but it becomes weakened now. As upstream plants gradually resumed production, prices of low titanium FeP would decrease in the future.

Asian Metal: Do you have regular stocks in domestic and aboard warehouses? How does the overseas warehouse charge?

Mr. Wang: We regularly keep around 5,000t of raw material yellow phosphorus and 1,000t of FeP in hand, and we don't have stocks in overseas warehouses, but we're planning to put some stocks in Rotterdam warehouses in the future. The charge of warehouse in Europe is expensive, higher one is about EUR0.08-0.09/t/day (USD0.09-0.1/t/day), and lower one is about EUR3/t/week (USD3/t/week).

Asian Metal: How about the inquiry as some European buyers are back from holiday?

Mr. Wang: The inquiry from Europe turned little better compared with last month, but it is still sluggish now. Regularly the demand is few in August and September and turns better in October. Inquiries from Europe and India are more active.

Asian Metal: Many Indian clients purchase FeP from Vietnam, and how do you think about FeP origins from Vietnam?

Mr. Wang: There are about 13-15 FeP plants in Vietnam, but most of FeP from Vietnam with Mn 10%max and Si 10%max, which is mainly supplied to domestic Vietnam and India. It has little influence to European market. The purchase price of Vietnam FeP is around USD280-300/t CIF India.

Asian Metal: What's your opinion about the future price trend in China?

Mr. Wang: I suppose the price of common FeP would slip due to the oversupply, and the price of super-low titanium FeP (Ti 0.5 % max) would keep soft at high level due to the relatively tight supply.

Asian Metal: What's your next plan for your company?

Mr. Wang: We will try our best to take the advantage of the producing cost in Yunnan to continue to enlarge our business in both domestic and overseas market. Additionally, we put more efforts on our deeper processing skills.