Executive Interviews

Asian Metal: Welcome to our interview Mr. Liu. Could you please give us a brief introduction to your company?

Mr. Liu: Benxi Shentie (Group) Co., Ltd., established in 2007, is a modern private enterprise based in the Benxi area. We are an intelligent, digital, and green company integrating mining, iron powder beneficiation, smelting, and casting. Our annual iron production capacity reaches one million tonnes. With access to abundant natural resources and independently operated major mines, we ensure a long-term and stable supply of high-quality raw materials such as iron ore fines. We produce a range of ductile iron grades for casting, position ourselves in the high-end segment of both domestic and international markets, and are deeply integrated into high value-added industrial chains. Our goal is to provide premium cast iron products for precision casting enterprises engaged in equipment manufacturing. Through our strong reputation for quality and excellent after-sales service, Benxi Shentie Group has become a trusted partner and major supplier to leading enterprises in various fields such as military, aerospace, nuclear power, wind power, high-speed rail, automotive components, shipbuilding, hydraulics, and rail transit. Our marketing network extends across China and beyond.

Asian Metal: What are the main application areas of your company’s products, and how is downstream demand performing currently?

Mr. Liu: Our iron products are mainly used in the wind power, automotive, military, shipbuilding, high-speed railway, and aerospace industries. At present, demand from the wind power sector remains strong, while other downstream industries are showing stable but relatively weak demand.

Asian Metal: Could you give us an overview of domestic iron production this year, and tell us about your company’s current production situation?

Mr. Liu: According to statistics, China’s cumulative iron production in the first nine months of this year reached 646 million tonnes, down 1.1% year-on-year. In September alone, production was 66.05 million tonnes, marking a 2.4% year-on-year decrease. Our own production and sales have remained relatively balanced in recent months. The company currently holds virtually no inventory, maintaining a stable daily output of around 2,500 tonnes.

Asian Metal: Domestic iron prices declined earlier this year before rebounding later. What were the main factors behind this trend?

Mr. Liu: Due to weak demand, domestic iron prices continued to fall during the first half of the year. For example, the price of S.G. cast iron Q10 in Benxi dropped from about RMB3,050/t (USD430/t) at the beginning of the year to around RMB2,700/t (USD380/t) by the end of June—a cumulative decrease of about RMB350/t (USD49/t), or more than 10%. However, as steel prices strengthened and raw material costs recovered, iron prices gradually rebounded in July and August, and have since stabilized at around RMB2,950/t (USD416/t).

Asian Metal: The trade conflict between China and the United States has recently eased. What benefits do you think this may bring to the iron industry?

Mr. Liu: The easing of China–U.S. trade tensions will indeed benefit downstream sectors, particularly export-oriented enterprises. As export activity picks up, it will drive additional demand for iron, providing some support for market prices.

Asian Metal: How do you foresee the domestic iron market performing in the fourth quarter?

Mr. Liu: Raw material prices have remained relatively firm recently, offering solid support for iron prices. Currently, the import price of 62%min Australian iron ore fines has stayed above USD100/t CIF China, with limited downside potential in the short term. Additionally, domestic coke prices have risen for two consecutive rounds in October, totaling an increase of RMB100/t (USD14/t). Although downstream demand is unlikely to improve significantly in the near term, raw material cost support should keep domestic iron prices generally stable throughout the fourth quarter.

Asian Metal: What are your company’s development plans for the future?

Mr. Liu: We aim to maintain stable production through the end of the year while continuing to meet customer needs with high-quality products. At the same time, we plan to actively expand our customer base both domestically and internationally to navigate market challenges and ensure steady business growth.