8th World Antimony Forum

TBD
Guiyang, Guizhou, China

12th Rare Earth Summit

TBD
Hangzhou, Zhejiang, China

11th Aluminum Raw Materials Summit

TBD
Hangzhou, Zhejiang, China

9th Magnesium Summit

TBD
Hangzhou, Zhejiang, China

13th World InBiGeGa Forum

TBD
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

Interview with Mr. Ding Jian, President of Yunnan Grand Silicon Logistics Co., Ltd

Yunnan Grand Silicon Logistics Co., Ltd. (brief as Yunnan Grand Silicon Logistics below) is a modern logistics enterprise that engaged in the storage, transportation and information service of silicon metal with the possession of professional silicon metal warehouse whose size is larger than 10,000 square meters. Based on its well-deserved reputation and overflow, safe as well as timely service, the company has enjoyed great popularity among its clients over years and established good business relationships with more than 36 silicon metal smleters in Dehong, Baoshan, Nujiang, Lincang, Wenshan as well as other places in Yunnan with highly appreciation and favorable reputation.
Ding Jian: Yunnan silicon metal production and market
----Interview with Mr. Ding Jian, President of Yunnan Grand Silicon Logistics Co., Ltd
Asian Metal: Good day, Mr. Ding! Thank you for taking the interview of Asian Metal. Firstly, please make a brief introduction of Yunnan Grand Silicon Logistics.
Mr. Ding: Yunnan Grand Silicon Logistics Co., Ltd. (brief as Yunnan Grand Silicon Logistics below) is a modern logistics enterprise that engaged in the storage, transportation and information service of silicon metal with the possession of professional silicon metal warehouse whose size is larger than 10,000 square meters. In 2011, the storage capacity of silicon metal of our company gets to 26,000 tons, and the transit amount of silicon metal will also break through 200,000 tons.
Asian Metal: Grand Silicon Logistics is one of the most important silicon metal storage and trading platform in Yunnan, and could you please make a brief introduction of the trading model of silicon metal in Yunnan?
Mr. Ding: The silicon metal trading model in Yunnan is as follows: The silicon metal smelters store their materials in our warehouse. As a third party of the trading, based on the principle of fairness, we ensure the trading contract between smelters and buyers to be executed smoothly. After the seller and buyer signing the trading contract, the seller will provide a letter of assignment of goods. We have to check whether the materials are in the warehouse. Then, the buyer is supposed to make payment to the seller based on the assignment and authorize us to deal with the transportation and its related affairs. The letter of assignment of goods has became an indispensable document in the silicon metal trading business in Yunnan as it reduces the risks and ensure the safety of capital and goods of the buyer and the seller.
Asian Metal: Yunnan is one of the most import silicon metal producing area in China and its output kept increasing in the recent several years following the construction of the furnaces of 12,500kva. The output reaches around 1/3 of the total in China. Could you please introduce the advantages of silicon metal production in Yunnan?
Mr. Ding: Yunnan locates in the low latitude area in Southwest China with ample rainfall and resources. Yunnan has a large reservation of high-quality silica. Furthermore, the hydro-power in Yunnan is abundant, which supports the silicon metal production as power consumption accounts for the largest proportion of the silicon metal production cost. In addition, Yunnan nears Myanmar whose charcoal resource supports the production of the high-grade silicon metal in Yunnan. Taking into consideration of the power supply and the charcoal resources, smelters in Yunnan could produce high-grade silicon metal with stable quality, which wins the favor in both domestic and overseas market.
Asian Metal: The main production areas in Yunnan are Baoshan, Dehong, Nujiang and Weshan. How about the power prices for the rainy season this year and the current operating rate?
Mr. Ding: The power prices for the rainy season are as follows: Baoshan: RMB0.348/kwh; Dehong: RMB0.344/kwh; Nujiang: RMB0.26/kwh; Weshan: RMB0.328/kwh. The overall operating rate in Yunnan reaches around 80% now.
Asian Metal: Chinese silicon metal price rebounded in May due to the limited output following the insufficient power supply. The rainfall in South China increased recently and the power supply turned to be stable, so the silicon metal supply kept increasing and prices dropped gradually. Could you please make a brief review of the recent silicon metal market and talk about the reasons that pushed up silicon metal prices in May?
Mr. Ding: As the power prices in some provinces increased and the power supply was tight in May, the silicon metal price increased following the reducing output. Aside from this, the production cost of silicon metal was still high in May and the market saw many inquiries at the time, so smelters raised prices gradually to make up the loss they suffered previously. Meanwhile, the demand for silicon metal from the downstream aluminum alloy industry was stable and consumers came back to the market to replenish stocks in May after running down inventories, which was also a momentum that pushed silicon metal price to go up.
Asian Metal: How about the current silicon metal market in Yunnan now?
Mr. Ding: The low-grade silicon metal market in Yunnan is moving downwards with price decreasing. While the price for high-grade silicon metal does not see large fluctuation due to the relatively limited supply and the stable activities. The current stocks of silicon metal in Yunnan are around 12,000t.
Asian Metal: How do you think about the future market?
Mr. Ding: Currently, the demand for silicon metal in both domestic and overseas market is not strong and the market is in thin trading. I think low-grade silicon metal market will keep dull in the near future with price dipping further, which is also likely to drag the high-grade market to go down.
Asian Metal: Does Yunnan Grand Silicon Logistics have any plans in expanding your business in the near future?
Mr. Ding: We are now perfecting the information network platform of silicon metal, by which the customers could have a better understanding of the goods delivery, right transfer and daily inventory of silicon metal through the internet. Our company will provide independent online account to our customers in order to make them track the inventory of their goods at any time with our convenient, quick and efficient comprehensive service.
On the other hand, our company has cooperation with many banks, such as CMBC and Guangdong Development Bank to evolve our diversified finance businesses such as warehouse receipt collateral and joint loan and solve the financial problems for our customers.
In the second half of this year, we plan to have a further expansion of our warehouse capacity of silicon metal in order to provide our high-quality service to more silicon metal plants as well as customers.
Asian Metal: Thanks for your precious time for this interview, Mr. Ding. We hope your business is booming.
Mr. Ding: Thank you!