Host
Asian Metal
Sponsor
End of Forum
With the support and trust of companies in cobalt and lithium industry, Asian Metal has successfully organized World Cobalt & Lithium Forum 2012 on April 18-20 in Hangzhou Zhejiang , China . About 200 delegates both at home and abroad attended the event.
On the morning of April 19, Mr. Wei Jianing, Vice Minister of Department of Macroeconomic Research of the Development Research Center of the State Council , gave a report on " Analysis of Macroeconomic Policies and Economic Risk both at home and abroad ". The report illustrated the external risk and domestic short-term risk that current Chinese economy is facing, and gave a detailed description of the consequences of the crisis and the policy measures. At last, Mr. Wei pointed out that China 's economic reform must be carried out, and gave a detailed explanation on all economic reform methods that we should take, which helps insiders see clearly about the current and future economic development.
Mr. Philipp Sushchikhin, Sales Manager of Norilsk Nickel Marketing ( Shanghai ) Co., Ltd. gave a report on " Nickel Giant in Cobalt Business ". He analyzed the supply and demand of current global market and prospected the development of future cobalt market. The report indicates global cobalt production continuously grows, and Mr. Sushchikhin predicted that the output will increase by 8% in 2012; global demand of cobalt market will largely depend on the growth of lithium battery industry and the development of the aircraft industry .
Afterwards, Ms. Liu Wei, Chief Operating Officer of Nanjing Hanrui Cobalt Co., Ltd. analyzed the situation of cobalt powder and export market of China .
The report said 2012 is a year full of opportunities and challenges. In the international market, many factors, such as the uncertainty of international environment, the weak demand from downstream industries, appreciation of RMB , the price competitive among the market participants, makes the cobalt price decline in general. In the domestic market, oversupply situation is serious. Most cobalt smelting enterprises get small profits, and some are even at loss, which caused many companies to reduce production. The reporter prospected the future cobalt market. She noted new cobalt production capacity will exceed 20,000 metal tons in the next few years. It is predicted that the supply will be 95,000 metal tons in 2014.
Mr. Le Yukun, Vice General Manager of BOC International ( China ) Limited expounded global metal and capital markets. The report explained the role that mergers bring to mining industry, analyzed cases such as the Alcan acquisition war and the combinations between Galaxy Resources and Lithium One Inc. , which provided the reference suggestion in overseas acquisitions for Chinese enterprises. Global lithium industry concentration is analyzed of the report, and the reporter anticipated the integration of Chinese lithium industry.
Dr Li Xingyang, Asia Energy Technology Manager of FMC Corporation gave a speech on “ Revolutionary Electrode Materials for High-Performance Lithium-ion Batteries --FMC & World LIBs” . The report introduced the development of cathode materials of lithium battery and technology that related to cathode materials, and analyzed the market situation and the future development trend of cathode materials.
In the afternoon, Mr. Wang Xiaoming, Vice General Manager and Marketing Director of Beijing Easpring Co., Ltd. made a report on “Development and Prospect of Lithium Battery Cathode Material”. He noted that lithium battery market obtained stable developments in the past five years. Accordingly, cathode material developed rapidly. Market share of Chinese producers improved dramatically in 2011. However, compared with enterprises in South Korea and Japan , Chinese suppliers are in shortage of real leading corporations, resulting in intense competitiveness.
For the aspect of application prospect of cathode material, low-cobalt material is the inevitable trend.
Afterwards, Mr. Wang Dongwang, Vice General Manager from The Fanya Metal Exchange and Mr. Feng Lujun, Sales Director made a speech on "The Fanya Metal Exchange Creating New Channels for the Purchase and Sale of Cobalt" and then they answered the questions of participants.
The last session is the discussion part. Special guests participated in the discussion include: Zhang Baoyu, Chairman of Jiangsu Xiongfeng technology Co., Ltd., Wang Xiaoming, Vice General Manager and Marketing Director, Beijing Easpring Co., Ltd., Luo Jie, Chairman, Ganzhou Tengyuan Cobalt Industry Co., Ltd., Chen Jun, Vice General Manager, Tianjin Huaxia Hongyuan Industry Co., Ltd..
Joy Kong, Analyst of Asian Metal: most of cobalt concentrates of Chinese processing companies is imported from Africa. We know that it needs one to two months for cobalt concentrates to be shipped to China and then it takes some time for the raw materials to be processed into the finished products. We invite Chairman Zhang and Luo to talk about how to reduce risk.
Mr. Zhang Baoyu from Jiangsu Xiongfeng technology Co., Ltd.: It needs two months for cobalt concentrates to be transported to China and it takes about 75 days or so from cobalt concentrates to be processed into cobalt salts. During the period, the market changes continuously, which brings high risk to us. In order to avoid risk, we take several measures as below:
Firstly, we sign contract back to back, reducing long-term contracts for cobalt concentrates.
Secondly, we expand production and process for other companies.
Thirdly, we are committed to improve manufacturing technology and reduce production cost.
However, there is excess production in cobalt market and it is difficult to make profit right now.
Ms. Luojie from Ganzhou Tengyuan Cobalt Industry Co., Ltd.: there is the same situation for us and there is thin profit in cobalt industry. Our group company produces rare earth, with good profit margin. Cobalt business only accounts for about 10% of our total business. It is difficult to avoid risk in cobalt market and we are waiting for the opportunity in the future.
Joy Kong from Asian Metal: Beijing Easpring Co., Ltd. is a major lithium cobalt oxide exporter in China . In 2010 and 2011, Easpring exported about 3,000t in total. Previously, there are three major lithium cobalt oxide exporters: Easpring, Reshine and Jiangsu Wuxi L&F. From the second half of 2011, B&M began to export lithium cobalt oxide to South Korea . Mr. Wang, please tell us your view about the changes in lithium cobalt oxide export market:
Mr. Wang Xiaoming, Vice General Manager and Marketing Director, Beijing Easpring Co., Ltd.:
Easpring began to export lithium cobalt oxide to South Korea in 2006 and then Reshine, B&M entered into South Korean market. It means that Chinese cathode materials industry becomes mature and our materials can meet the demand from giant lithium battery producers in the international market.
Except for South Korea , we have developed the business with Japanese lithium battery manufactures. Easpring and Xiamen Tungsten Co., Ltd. started to export lithium nickel manganese cobalt oxide in 2011 and it suggests that Japanese lithium battery producers acknowledge the cathode materials from China .
Though there are more export enterprises in China, we know that lithium battery producers in South Korea and Japan prefer to buy home made raw materials for high-end cathode materials. Chinese made cathode materials products belong to middle-and-low end. We should develop our own R&D in order to adapt to the changing market conditions.
Joy Kong from Asian Metal: Tianjin Huaxia Hongyuan Industry Co., Ltd. is a new lithium cobalt oxide producer. Mr. Chen Jun, please briefly introduce Huaxia Hongyuan to us:
Mr. Chen Jun, Vice General Manager, Tianjin Huaxia Hongyuan Industry Co., Ltd.:
Huaxia Hongyuan was established in 2009, and major founders own more than 10 years experience in the industry. We are dedicated to produce high value added lithium cobalt oxide and we always focus on it because we think lithium cobalt oxide is the best functional cathode materials. In addition, I think we should enhance technology exchange in the same industry to make progress together.
Joy Kong from Asian Metal: At present, Huaxia Hongyuan mainly sells lithium cobalt oxide in domestic market. Some lithium battery producers reflect that they would like to use mixture of lithium cobalt oxide and lithium nickel manganese cobalt oxide instead of sold lithium cobalt oxide. Mr. Chen, please tell us your opinion about the future development trend of lithium battery.
Mr. Chen Jun, Vice General Manager, Tianjin Huaxia Hongyuan Industry Co., Ltd.:
I think the performance of lithium cobalt oxide is best among all the current cathode materials of lithium battery, so as long as cobalt price is in a reasonable range, lithium cobalt oxide will maintain a certain market share.
At the same time, the technology of lithium cobalt oxide is improving with high density, etc.. Therefore, I do not believe lithium cobalt oxide will be totally replaced by other cathode materials in a short time.
Asian Metal has successfully held many forum and summit of all kinds of minor metals and always gets fully support from companies within the industry. We really appreciate your efforts and we will keep on working wholeheartedly. See you on next World Cobalt & Lithium Forum in 2013!
Wei Jianing, Vice Minister of Department of Macroeconomic Research of the Development Research Center of the State Council
Philipp Sushchikhin, Sales Manager of Norilsk Nickel Marketing (Shanghai) Co., Ltd.
The Scene of World Cobalt & Lithium Forum 2012
Liu Wei, Chief Operating Officer of Nanjing Hanrui Cobalt Co., Ltd.
Le Yukun, Vice General Manager of BOC International (China) Limited
Dr. Yangxing Li, Asia Energy Technology Manager of FMC Corporation
Wang Xiaoming, Vice General Manager and Marketing Director of Beijing Easpring Co., Ltd.
Feng Lujun, Sales Director of The Fanya Metal Exchange
Luo Jie, Chairman, Ganzhou Tengyuan Cobalt Industry Co., Ltd., Wang Xiaoming, Vice General Manager and Marketing Director, Beijing Easpring Co., Ltd., Zhang Baoyu, Chairman, Jiangsu Xiongfeng technology Co., Ltd., Joy Kong, Analyst, Asian Metal