Executive Interviews

Asian Metal: Thanks for accepting Asian Metal’s interview, Mr. Zhuo. Please introduce your company and your main business.

Mr. Zhuo: Established in December of 2010, Rezel Catalysts Corporation focuses on the R&D, production and sales of all kinds of oil refining catalysts and owns more than 50 patents and integrated R&D, quality control, technology service systems. The company owns an annual production capacity of 30,000t of FCC catalysts for clients from United States, India, the Middle East, South America, South Korea, Southeast Asia, ect. and more than 30 petrochemical corporations in China.

Asian Metal: How many tons of catalyst did your company produce in 2021 and what’s your production plan in 2022?

Mr. Zhuo: We produced around 20,000t of catalysts with an annual sales revenue of RMB500 million in 2021. We plan to put the production lines of 7,000t of propane dehydrogenation catalyst, 2,000 tons of reforming catalysts, 1,000 tons of silver catalysts, 10,000 tons of hydrogenation catalysts and 20,000 tons of ceramic catalysts carrier filler into operation in 2022. We expect an output of around 40,000t of all kinds of catalysts in 2022.

Asian Metal: What’s the current global catalysts output? How about the proportion of rare earth catalysts?

Mr. Zhuo: The current global catalysts output records around 1.6 million tons, half of them, which are about 0.8 million tons, are rare earth catalysts.

Asian Metal: How about the current development status of Chinese catalyst industry?

Mr. Zhuo: There are two state-owned catalysts producers which are China Petrochemical and Sinopec, and around 100 private enterprises in China. Chinese catalyst industry developed rapidly over the past three years with the appearance of around 100 new major chemical companies, which need to consume rare earth catalysts, including Zhejiang Petrochemical, Shenghong Petrochemical, Dalian Hengli and Shandong Yulong etc. The high performance catalysts in domestic market, such as propane dehydrogenation catalyst, reforming catalyst, silver ethylene oxide catalyst and polyolefin catalyst, are mainly imported from other countries. More than 80% are imported from United States and Europe. As a key technology and product in petrochemical industry, we have to develop the domestic Chinese catalysts industry urgently for national economy security, so that we could break through the containment.

Asian Metal: Would you please share your prediction of Chinese catalyst industry development outlook in the coming two years?

Mr. Zhuo: In view of the requirements of energy saving and environmental protection, low-carbon and carbon reduction, as well as national efforts to develop petrochemical and coal chemical industries, I foresee continuously increasing demand and promising prospect of Chinese catalysts industry. I predict that Chinese and global catalyst outputs would rise with a compound annual growth rate of 3-5% in the coming two years.

Asian Metal: What rare earth elements are mainly used in rare earth catalysts industry?

Mr.Zhuo: The production of rare earth catalysts mainly consumes light rare earth, such as cerium, lanthanum, praseodymium, neodymium and some heavy rare earth, including yttrium and gadolinium. FCC catalysts mainly consume cerium, lanthanum and yttrium. Cerium, lanthanum, praseodymium and neodymium are mainly used for catalysts to purify motor vehicle exhaust gas. Catalytic combustion needs to use cerium and lanthanum. Synthesis catalyst of butadiene rubber mainly needs to consume cerium, praseodymium, neodymium, gadolinium, etc.

Asian Metal: What fields are rare earth catalysts mainly applied to? What are major downstream products?

Mr. Zhuo: Rare earth catalysts are mainly applied to petroleum refining industries (such as catalytic cracking catalysts and auxiliaries as well as hydrocracking catalysts), petrochemical fields (reforming catalysts, propane dehydrogenation catalysts, acrylonitrile catalysts and rare earth chemical additives, etc.), fine chemical industries (such as pharmaceutical catalysts, pesticide catalysts, fragrance catalysts and cosmetic catalysts), environmental protection fields (including motor vehicle tail gas purification catalysts, flue gas denitrification catalysts and catalytic combustion catalysts ect.), polymer material fields (such as synthetic rubber catalysts, polyolefin nucleating agent and stabilizer, rare earth plastic foaming agent), new energy and other fields. Downstream products mainly include chemical dyes (gasoline, diesel and kerosene), chemical raw materials (ethylene, propylene, butene and aromatics), high polymer compounds (synthetic rubber, polyolefin and organic high polymer compounds), and fine chemicals (medicine, pesticides, pigments, flavors and cosmetics).

Asian Metal: What are the main rare earth products that rare earth catalyst producers pay attention to?

Mr. Zhuo: Rare earth catalysts producers pay close attention to prices of lanthanum and cerium related products due to their big consumption volumes. Rare earth catalyst producers in domestic market mainly purchase lanthanum carbonate 45%min or LaCe chloride 45%min. Overseas catalyst producers mainly buy lanthanum oxide 99.9%min and cerium oxide 99.9%min for further process. We mainly purchase lanthanum carbonate 45%min. Our lanthanum carbonate 45%min consumption volume in 2021 recorded approximately 1,000t.

Asian Metal: How many tons of lanthanum and cerium products do Chinese rare earth catalysts producers need to consume every year?

Mr. Zhuo: The annual consumption volume of lanthanum and cerium related products of global rare earth catalysts producers, if converted to oxide volume, records around 30,000t, 15,000t of which are consumed by Chinese rare earth catalysts producers.

Asian Metal: How about Chinese lanthanum carbonate 45%min price trend over the past year?

Mr. Zhuo: Markets of lanthanum and cerium related products see oversupply due to high percentage of 24-27% and 40-51% of lanthanum and cerium in light rare earth ore. The competition among suppliers is furious. Therefore, the Chinese lanthanum oxide 45%min prices slid slightly over the past year. The current Chinese lanthanum oxide 45%min mainstream prices dropped to RMB3,000-3,200/t (USD448-478/t) EXW D/P, down by RMB200-300/t (USD29.9-44.8/t) from half a year ago.

Asian Metal: What’s the current supply and demand pattern of Chinese lanthanum carbonate 45%min?

Mr. Zhuo: China’s rare earth ore mandatory plan was 168,000t in 2021, including 148,850t for light rare earth ore and 19,150t for heavy rare earth ore. These rare earth ores contain 40,300-45,300t of lanthanum products, whose major downstream application is catalyst industry. The annual demand of lanthanum and cerium related products from global catalyst industry records around 30,000t now. Therefore, lanthanum related products (including lanthanum carbonate 45%min) are oversupplied at present.

Asian Metal: Please share your prediction of Chinese lanthanum carbonate 45%min supply and demand in the coming 2-3 years.

Mr. Zhuo: In my opinion, Chinese rare earth ore mandatory plan will probably increase gradually or show steady trend. As a consequence, the supply of lanthanum carbonate 45%min would rise every year in the coming 2-3 years. The demand for lanthanum related products (especially lanthanum carbonate 45%min) from catalyst industry will also probably go up but will match the supply increase. Therefore, I foresee the Chinese lanthanum carbonate 45%min market would witness excess supply in the forthcoming 2-3 years.

Asian Metal: Thanks for your excellent opinions and wish you every success in your business!

Mr. Zhuo: Thank you!