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 Niu Xueping, General Manager of Gansu Hongding Abrasive S&T Co., Ltd
Gansu Hongding is located in Heishichuan Industrial Park in Golan county, Gansu province, and was founded in May 2011. With processing facilities taking up more than 150 acres, the company focuses on the production, processing and sales of SiC. It has a power capacity of 30000kva to smelt black silicon carbide and two SiC sands processing lines and a powder line. While the company boasts fully automatic computer mixing system so as to ensure the accuracy of the ingredient ratio, the three-steps multiple grading system guarantees the best quality. There is an independent production testing center to makes sure the product quality is stable and a post-sales service center to enhance customer experience. To serve overseas customers, the company has set up International Operating Department.
Niu Xueping: Current market challenges are an opportunity for industry growth
----Interview with Niu Xueping, General Manager of Gansu Hongding Abrasive S&T Co., Ltd
Asian Metal: Nice to see you, Mr. Niu! Thank you for accepting this interview. As we all know, the general macro-economy is in continuous decline. Do you have any comments on the industry and your own company’s development?
Niu: Firstly, we are competitive in price. Silicon carbide prices are chaotic while our offers are a bit lower than average mainstream prices. We are confident in our business as most clients who come to visit our company and negotiate purchase with us regularly conclude final deals. Everyone fully recognizes our reputation and sincerity in the industry and many enterprises like Sinosteel Luoyang Refractories, Punai and Shandong Yujia are willing to cooperate with us. However, operating costs are very high in the company and we have seen growing operating deficits in many companies that will gradually be forced out of the market.
Asian Metal: What can account for the sluggish movement in the silicon carbide industry?
Niu: I think the most important reason is overcapacity. New production lines have been established in every region and many furnaces with capacity of 6,000kva and 8,000kva have been upgraded to 12,500kva. For instance, Tianzhu Kuangou Industrial Park attracted many investments for green siclicon carbide and constructed over 30 plants in the park, almost all of them focusing on green silicon carbide production. Producing green silicon carbide was very profitable with a net profit as high as RMB3,000-4,000/t at that time. But we did not follow suit as the marekt began to go downhill only several months later. With cheaper power charges, Gansu government announced to build a carbon materials base with capacity of several hundred thousand tons when other regions also had similar plans and Ningxia is sure to surpass Gansu in terms of development.
While green silicon carbide is easily replaced by other materials due to its single-purpose character, black silicon carbide is widely used in traditional industries and has no substitute. So we have focused on the production of black silicon carbide. We have some large clients who just purchase the material from us, including Sinosteel Luoyang Refractories,Punai and Shandong Yujia.
Asian Metal: How is your production status?
Niu: We have one 30,000kva transformer as well as four production lines with annual capacity of 30,000 tons and our new plant will be put into operation soon. Our smelter in Tianzhu has two production lines with capacity of 12,500kva.
Asian Metal: What are your characteristics in technological improvement?
Niu: We are focusing on reducing energy consumption in smelting as we can control the energy usage at slightly lower levels while still being able to guarantee the products’ volume density under the same conditions. On processing, we are making improvements on fine processing and decontamination. We have 7 dust-cleaning apparatuses in the newly established full-automatic processing lines, which can limit dust content at lowest level and the magnetic separator is over 20,000v, controlling Fe-content at 0.1-0.2 despite 0.35 requirement from most clients. On size distribution of processing sand, we can fully meet clients' requirement.
Asian Metal: What is your plan in the next 2-3 years?
Niu: We plan to expand total capacity to 100,000 tons, including newly established black silicon carbide lines and product capacity, which will enable us to be free from export restraints and increase products' additional value. As a member of China Minmetals Import and Export Chamber, we have filed an application for import and export licenses. The target market is India as it is more profitable to export materials to this country considering price and transportation. European and American markets require much mixture rather than a single product and there is not much silicon carbide exported to Europe.
Asian Metal: What is your opinion on the export market?
Niu: We have no export quota at present and cannot assure whether it will be cancelled next year. If it is cancelled, the government will release some other policies to restrict exports. Although we are just watching the market due to no clear acknowledgement of policies concerning enterprises, we have already finished the primary procedures for export registration.
Sales of silicon carbide grade 2 are good in the domestic market and there is almost no unsold material in the company as some large clients can consume all of our product.
Asian Metal: What is your suggestion for Asian Metal?
Niu: We hope Asian Metal invites more foreign businessmen to attend meetings and to make the meeting a platform for business communication.
We also hope to develop overseas business through the cooperation with Asian Metal.
Asian Metal: Thank you for accepting the interview and maintaining cooperative relationship with Asian Metal!
Niu: Firstly, we are competitive in price. Silicon carbide prices are chaotic while our offers are a bit lower than average mainstream prices. We are confident in our business as most clients who come to visit our company and negotiate purchase with us regularly conclude final deals. Everyone fully recognizes our reputation and sincerity in the industry and many enterprises like Sinosteel Luoyang Refractories, Punai and Shandong Yujia are willing to cooperate with us. However, operating costs are very high in the company and we have seen growing operating deficits in many companies that will gradually be forced out of the market.
Asian Metal: What can account for the sluggish movement in the silicon carbide industry?
Niu: I think the most important reason is overcapacity. New production lines have been established in every region and many furnaces with capacity of 6,000kva and 8,000kva have been upgraded to 12,500kva. For instance, Tianzhu Kuangou Industrial Park attracted many investments for green siclicon carbide and constructed over 30 plants in the park, almost all of them focusing on green silicon carbide production. Producing green silicon carbide was very profitable with a net profit as high as RMB3,000-4,000/t at that time. But we did not follow suit as the marekt began to go downhill only several months later. With cheaper power charges, Gansu government announced to build a carbon materials base with capacity of several hundred thousand tons when other regions also had similar plans and Ningxia is sure to surpass Gansu in terms of development.
While green silicon carbide is easily replaced by other materials due to its single-purpose character, black silicon carbide is widely used in traditional industries and has no substitute. So we have focused on the production of black silicon carbide. We have some large clients who just purchase the material from us, including Sinosteel Luoyang Refractories,Punai and Shandong Yujia.
Asian Metal: How is your production status?
Niu: We have one 30,000kva transformer as well as four production lines with annual capacity of 30,000 tons and our new plant will be put into operation soon. Our smelter in Tianzhu has two production lines with capacity of 12,500kva.
Asian Metal: What are your characteristics in technological improvement?
Niu: We are focusing on reducing energy consumption in smelting as we can control the energy usage at slightly lower levels while still being able to guarantee the products’ volume density under the same conditions. On processing, we are making improvements on fine processing and decontamination. We have 7 dust-cleaning apparatuses in the newly established full-automatic processing lines, which can limit dust content at lowest level and the magnetic separator is over 20,000v, controlling Fe-content at 0.1-0.2 despite 0.35 requirement from most clients. On size distribution of processing sand, we can fully meet clients' requirement.
Asian Metal: What is your plan in the next 2-3 years?
Niu: We plan to expand total capacity to 100,000 tons, including newly established black silicon carbide lines and product capacity, which will enable us to be free from export restraints and increase products' additional value. As a member of China Minmetals Import and Export Chamber, we have filed an application for import and export licenses. The target market is India as it is more profitable to export materials to this country considering price and transportation. European and American markets require much mixture rather than a single product and there is not much silicon carbide exported to Europe.
Asian Metal: What is your opinion on the export market?
Niu: We have no export quota at present and cannot assure whether it will be cancelled next year. If it is cancelled, the government will release some other policies to restrict exports. Although we are just watching the market due to no clear acknowledgement of policies concerning enterprises, we have already finished the primary procedures for export registration.
Sales of silicon carbide grade 2 are good in the domestic market and there is almost no unsold material in the company as some large clients can consume all of our product.
Asian Metal: What is your suggestion for Asian Metal?
Niu: We hope Asian Metal invites more foreign businessmen to attend meetings and to make the meeting a platform for business communication.
We also hope to develop overseas business through the cooperation with Asian Metal.
Asian Metal: Thank you for accepting the interview and maintaining cooperative relationship with Asian Metal!