Executive Interviews

Asian Metal: Thank you, Mr. Shuai, for joining us for this interview. Could you please give us a brief introduction to your company?

Mr. Shuai: Guangxi Zirconium Industry Technology Co., Ltd. is located in Qinzhou’s Qin’nan District, Guangxi. We were established on December 8, 2021, covering an area of 143.8 mu, with a total investment of RMB1.02 billion. The plant is designed to process 600,000 tonnes of titanium ore annually and relies mainly on the Group’s self-owned overseas mines, which provide high-quality raw materials and a stable supply. This enables large-scale production of high-grade titanium concentrates, zircon sand, rutile, monazite, garnet, kyanite, and other products.

Asian Metal: As a newly commissioned mineral processing plant this year, when did the facility officially start operations? What is your current monthly processing capacity for heavy minerals, and what is your zircon sand output?

Mr. Shuai: Planning for Guangxi Zirconium began in 2021, with construction starting in 2023. We officially went into production in 2025. From planning and construction to today’s commissioning, the project has been a long-term effort. Trial production of zircon sand began at the end of March, and full-scale operations started in May. At present, our monthly zircon sand output reaches 2,000 tonnes, including premium zircon sand with grades of 65%min and 66%min. We expect to produce a total of 20,000 tonnes this year.

Asian Metal: You mentioned that your company owns overseas mines. Could you briefly introduce them and share your expected annual import volume of raw materials?

Mr. Shuai: Our Group holds eight mining licenses in Mozambique, Africa. Last year, we imported about 2 million tonnes of heavy minerals from our Mozambique mines. This year, we expect heavy mineral imports to reach 2.2–2.3 million tonnes. The company also imports zircon ore from Australia and other regions, with total zircon ore imports projected to exceed 400,000 tonnes in 2025.

Asian Metal: In July 2025, zircon sand prices in the Chinese market began to decline more rapidly. What do you think are the main reasons behind this sharp drop?

Mr. Shuai: The reason is clear—the overall domestic and international economic environment is weak, and the real estate sector shows no signs of recovery. Some ceramic factories, which typically halt production in November or December, have already begun shutting down in July and August this year, leading to a sharp decline in domestic zircon sand demand. At the same time, China’s imports of zircon ore continue to rise, further dampening market sentiment and expectations.

Asian Metal: According to customs data, China’s zircon ore imports in June increased by 39.6% month-on-month and 134.53% year-on-year. Demand for zircon sand in the Chinese market is clearly falling, yet raw material imports keep rising. How do you see this phenomenon?

Mr. Shuai: It is true that leading mineral processing plants have been importing more zircon ore. Our own imports have also increased, mainly because we benefit from cost advantages. Currently, major processors hold large volumes of zircon ore purchased at higher prices, which are kept in inventory while they wait for a market rebound. The market is now oversupplied, so zircon sand prices will continue to decline, and they are already approaching the cost line. Falling prices put financial pressure on some processors, making them reluctant to purchase raw materials, which disrupts normal production and could reduce the availability of low-priced zircon sand in the spot market. Once supply tightens to a certain extent, there may be an opportunity for prices to recover.

Asian Metal: Given that it takes several months from locking in a mine price to bringing raw materials into China, what major challenges do processors face when ordering raw materials while zircon sand prices in China are expected to fall?

Mr. Shuai: It is a dilemma. If the locked-in raw material price is not favorable and zircon sand prices drop significantly, the company risks losses and added financial pressure. But if we do not import raw materials, it becomes difficult to maintain normal operations, as hundreds of employees and their families depend on this income. This year, we have also imported several shipments of heavy minerals, but zircon sand sales have been limited. This is mainly because some raw materials were priced at the end of December last year, when prices were higher than today. Selling zircon sand now at lower market prices would mean selling at a loss. However, if we do not sell at low prices, the finished products will have no place for storage, resulting in even greater losses and further financial strain. Moreover, as a major producer, we must show “industry responsibility” and cannot simply sell goods at any price. This is the challenge for large companies, whereas smaller ones have more flexibility.

Asian Metal: The price of premium zircon sand has fallen from RMB12,500/t in early June to around RMB11,500/t in early August, while standard chemical-grade zircon sand 65%min has dropped below RMB10,000/t. How do you see zircon sand price trends in China for August–September?

Mr. Shuai: I expect zircon sand prices to fall further in August and September. At present, processors are all under pressure, with raw material supplies increasing and demand continuing to weaken. I believe that prices for standard 65%min zircon sand could fall below RMB9,000/t.

Asian Metal: If prices were to rebound, when do you think a recovery is most likely to occur, and why?

Mr. Shuai: I believe zircon sand prices could stabilize and begin to recover moderately by the end of this year. The main reason is that in Q3, the market is still stagnant, with prices continuing to fall. This will lead to production cuts or even shutdowns at processing plants, while downstream buyers will also be dealing with excess finished products and low raw material inventories. By the year-end stocking period, zircon sand prices could see a stable recovery.

Asian Metal: Does your company have any plans to diversify into other business areas?

Mr. Shuai: At present, we have no plans to diversify. We will continue to follow the Group’s strategic plan and take each step steadily.