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 Chen Yanping, Vice General Manager of Dengfeng Songshan Tungsten and Molybdenum Material Co., Ltd.

Dengfeng Songshan tungsten and molybdenum material Co., Ltd., founded in 1992 and expanded in 1995 and 1997, is the sub-branch of Zhengzhou Songshan Group Co., Ltd. The company is located in the tourist city of Dengfeng with convenient transportation as it is the interchange of three express ways and the National Road 207. The company mainly produces ammonium molybdate, molybdenum powder, tungsten powder and the deep processing products of tungsten and molybdenum, with the production capacity of 400tpm for ammonium molybdate and 200tpm for tungsten and molybdenum products. Meanwhile, it has the electrolysis of water to hydroge station, the liquid ammonia to hydrogen station, the inspection and testing shop and the hydraulic pressure shop as subsidiary.
Chen Yanping: On the thoughts of the development of molybdenum deep processing products industry
----Interview with Chen Yanping, Vice General Manager of Dengfeng Songshan Tungsten and Molybdenum Material Co., Ltd.
Asian Metal: First of all, I’d like to express my gratitude for you accepting the interview of our website. So Mr. Chen could you tell me something about you company?
Chen: Our company is dealing in the production and sales of molybdenum and tungsten, starting from the purchase of molybdenum or tungsten concentrate or molybdenum oxide to the various deep processing products, such as molybdenum rods, molybdenum wires, molybdenum electrodes, molybdenum-plate electrodes, molybdenum, slices and other different molybdenum products with special shapes. Currently, we can maintain around 15tpm for the sales volume of molybdenum products.
Asian Metal: Over the past three quarters, the price of molybdenum raw material has kept decreasing, so what’s your point of the future market? Do you think it is still having room to go down further?
Chen: In the view of the current situation, prices of molybdenum may decrease further with slight markdown mainly due to the softening demand in the market. As molybdenum chemicals and deep processing products industries take up a small part of molybdenum, so they have little impact on the market. While the production of ferromolybdenum, one of the downstream products of molybdenum, dominates the molybdenum market. However, the steel mills, as the end-users of ferromolybdenum, are also experiencing the weak demand, thus making them keeping limited purchase of the material, which is difficult to push molybdenum market to develop positively. However, prices of molybdenum raw material are approaching the cost, which makes suppliers refuse to sell the material if prices are too low. So it is predicted the price of molybdenum concentrate cannot dip below RMB1,900/mtu in the future.
Asian Metal: As you said molybdenum deep processing products industry only takes a small part of molybdenum market, and then what’s the influence of falling prices of raw material on the products market?
Chen: The decrease of raw material has little effect on molybdenum products market. Whether the price of molybdenum raw material is high or low for deep processing products, the downstream producers would consume the materials anyway, so the demand is generally stable. But the price of molybdenum products may decrease slightly as the trend of raw material, albeit with small markdown.
Asian Metal: What about the demand for molybdenum deep processing products at present?
Chen: Generally speaking, the market is experiencing a weak performance with a little of surplus as most of plants have reduced the output and some have even suspended production.
Asian Metal: What are the main reasons of the current softening market as you concern?
Chen: On one hand, the macro-economy is operating in a weak way as the U.S. debt crisis has not ended while the European debt crisis has started. So there are many uncertainties in the market, which makes the participants cautious to the future market with operating at a low level. On the other hand, there are numerous of molybdenum products plants in domestic market. However, the demand from downstream consumers is limited, which leads to the phenomenon of “too many looters for the limited wealth”.
Asian Metal: Then how do we react to the current situation?
Chen: Firstly, from the view of the enterprise itself, it should establish the scientific management system, reduce the production cost by improving technology and strengthen the ability to produce the molybdenum products with special shapes. In this way, we can run with the approach as called “we get what others have not, we get the best when others have, we get the cheapest when others have the best as well” to maximize the profit. Secondly, from the point of the nation, the government should make full use of the method of macroscopic readjustment and control by taking effective measures to stop the stagnancy of economy. Nowadays, globalization has stretched to almost every corner of the world, so every economic system is closely connected and it is impossible for any country preferring to live alone. In this point, our country should cooperate with other countries to push the market home and abroad to gain a recovery.
Asian Metal: Mr. Chen, to be specific, what can we do to make molybdenum industry go in a positive way?
Chen: In order to walk out of the gloomy situation, it is necessary to control the raw material by compressing the production capacity of mines, close the mines with high cost but low grades of molybdenum ores, achieving the balance of supply and demand.
Asian Metal: Could you tell me your plan in future from the view of yourself combined with the current economic situation?
Chen: Although the economy performs weakly, we will continue to enhance the ability to develop innovate products as to improve the competitiveness in the market. In this case, we can take a position in the market by high quality.
Asian Metal: Well, I believe that as long as the government and the enterprises cooperate with each other, we can go through the hard times. Thanks again for accepting my interview and supporting our website. Chen: My pleasure. I hope Asian Metal can get better and better.