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 Jiangen Wang, General Manager of Yiyang City Huachang Antimony Industry Co., Ltd.
Jiangen Wang: Antimony market will rebound in September
----Interview with Jiangen Wang, General Manager of Yiyang City Huachang Antimony Industry Co., Ltd.
Asian Metal: Thank you for accepting my interview. Could you talk about the macro-economic performance in H1, 2011? Could you picture the trend of Chinese antimony market in H2 under the current global economic environment?
W: The global economy stabilizes from the joy of recovery in H1, 2011 and generally keeps dim at present. At the same time, the growth of China slows down with serious inflation. Considering the international market trend, there are more uncertainties and instabilities during the period of the global economy recovery. The domestic market is still under pressure from inflation.
Seen from the current status, the economy is expected to keep sluggish in H2, 2011 overall as the demand for antimony products softens. Hence, the antimony products price is unlikely to rise sharply. However, the deals in Q3 and Q4 will improve according to the purchasing tradition of the consumers.
AM: It was reported that the government planned to collect antimony products strategically during November last year during which there was not enough support for the price to increase sharply, but there was no specific measure carried out. What do you think that the government issues policies to readjust the antimony market?
W: The reserves and output of antimony metal are relatively small as antimony is a minor metal and it is not one deserving much attention of the government, at the same time, smuggle of antimony ingot keeps wild as it has a 5% of export tax. The volume through smuggle is much more than that through legal export as antimony price continued rising especially after the environmental regulation in Lengshuijiang area. Hence, the government should focus on restricting smuggle in order to protect the rare resources and standard the antimony market. On the other hand, the inflaming retarding rules are not enforced. Some enterprises reduce the production cost by decreasing the fire retardant amount as antimony price increases. Even though it is helpful to protect the company profit in a short time but is not interested to themselves. I hope that the companies with long-term development plan think twice before take actions and that the government can strengthen the force of relevant rules in the later period.
AM: We are reported that the demand for antimony ingot and antinomy trioxide keeps soft due to the influence of high antinomy ore cost. Some plants have reduced the utilization of capacity and producers hold not large inventories in hand at present. What do you think of the relationship between the market supply and general inventory?
W: Domestic antinomy ingot producers hold almost no inventories, unlike some toll-traders. Considering the current price level and the speculation that the price will increase in the later period, they do not intend to sell the material in a short time. Some converters reduce their utilization of capacity to examine and repair the blast furnaces as the weather in antinomy producing areas keeps hot during summer.
AM: We also focus on the current demand and the purchasing, inventories in the terminal utilization fields besides the supply. Could you introduce something for us?
W: OK. As far as I know, the current demand in antinomy market is almost rigid demand except some speculations. Some enterprises are unwilling to take extra position and purchase according to the need as the price fluctuates. It is the soft demand as we see.
However, we can see that the demand for antinomy products increases with the rapid development in economy, high polymer material, engineering plastics and polyester industries. Hence, I am confident about the market even though the current economy keeps sluggish with soft demands.
AM: In your opinion, the main difficulty faced by the antinomy trioxide producers without mines comes from the raw material purchasing or the sales extending as the raw materials supply tighten such as antinomy ore, antinomy ingot and the downstream products demand such as antinomy trioxide softens?
W: There is obvious sign for the antinomy market to stabilize after sharp fluctuation. Some enterprises without enough capitals have been forced to other industries or close and the competitiveness of the exiting enterprises worsens both on the raw material purchasing and sales extending. It is the certain result of the market that survival of the fittest.
Different enterprises have their own analyses to the pressure from raw material purchasing and sales extending. The large-scale enterprises mainly bear the pressure from raw material purchasing while the smaller ones are influenced significantly by both the two factors with few regular consumers and limited brand influence. It requires the enterprises to create new thoughts and seek for new development.
AM: On the other hand, the domestic traders report to receive more inquiries as the buyers from Europe and Japan return to the market after the summer holiday. They plan to increase their prices and expect the price to rise further again in September. What do you think of the market trend in September according to the present situation?
W: Chinese antimony market started to rebound. Buyers from Europe have been returning to the market and send inquiries to purchase in September. The price is likely to increase further due to the increasing demand. Most producers hold no antinomy ingot inventory at present while some toll-traders have some in hand. Investors are sure to push the price further in order to obtain more profits but the price will not rise sharply due to the influence of the soft global economy and weak demand. The antinomy ingot price is predicted to increase to RMB97,000-98,000/t as the peak price in September.
AM: Some middle and small-scale enterprises with limit capital strength hold back from the market in succession after the sharp fluctuation in H1, 2011. Does your company plan to extend as a large-scale enterprise with strong capital strength and rich operation experiences for many years?
W: Some mines are planning to extend the capacity so far and the output of antinomy products is expected to increase in 3-5 years. However, it needs to think whether the downstream market to bear.
Huachang will focus on the deep processing of antinomy products such as the production of glycol antinomy and antinomy acetate. The demand for polyester catalyst continues rising with the development of polyester industry. I have confidence to the development of the market.
AM: Thank you again for accepting my interview.
W: Thank you all the same!
W: The global economy stabilizes from the joy of recovery in H1, 2011 and generally keeps dim at present. At the same time, the growth of China slows down with serious inflation. Considering the international market trend, there are more uncertainties and instabilities during the period of the global economy recovery. The domestic market is still under pressure from inflation.
Seen from the current status, the economy is expected to keep sluggish in H2, 2011 overall as the demand for antimony products softens. Hence, the antimony products price is unlikely to rise sharply. However, the deals in Q3 and Q4 will improve according to the purchasing tradition of the consumers.
AM: It was reported that the government planned to collect antimony products strategically during November last year during which there was not enough support for the price to increase sharply, but there was no specific measure carried out. What do you think that the government issues policies to readjust the antimony market?
W: The reserves and output of antimony metal are relatively small as antimony is a minor metal and it is not one deserving much attention of the government, at the same time, smuggle of antimony ingot keeps wild as it has a 5% of export tax. The volume through smuggle is much more than that through legal export as antimony price continued rising especially after the environmental regulation in Lengshuijiang area. Hence, the government should focus on restricting smuggle in order to protect the rare resources and standard the antimony market. On the other hand, the inflaming retarding rules are not enforced. Some enterprises reduce the production cost by decreasing the fire retardant amount as antimony price increases. Even though it is helpful to protect the company profit in a short time but is not interested to themselves. I hope that the companies with long-term development plan think twice before take actions and that the government can strengthen the force of relevant rules in the later period.
AM: We are reported that the demand for antimony ingot and antinomy trioxide keeps soft due to the influence of high antinomy ore cost. Some plants have reduced the utilization of capacity and producers hold not large inventories in hand at present. What do you think of the relationship between the market supply and general inventory?
W: Domestic antinomy ingot producers hold almost no inventories, unlike some toll-traders. Considering the current price level and the speculation that the price will increase in the later period, they do not intend to sell the material in a short time. Some converters reduce their utilization of capacity to examine and repair the blast furnaces as the weather in antinomy producing areas keeps hot during summer.
AM: We also focus on the current demand and the purchasing, inventories in the terminal utilization fields besides the supply. Could you introduce something for us?
W: OK. As far as I know, the current demand in antinomy market is almost rigid demand except some speculations. Some enterprises are unwilling to take extra position and purchase according to the need as the price fluctuates. It is the soft demand as we see.
However, we can see that the demand for antinomy products increases with the rapid development in economy, high polymer material, engineering plastics and polyester industries. Hence, I am confident about the market even though the current economy keeps sluggish with soft demands.
AM: In your opinion, the main difficulty faced by the antinomy trioxide producers without mines comes from the raw material purchasing or the sales extending as the raw materials supply tighten such as antinomy ore, antinomy ingot and the downstream products demand such as antinomy trioxide softens?
W: There is obvious sign for the antinomy market to stabilize after sharp fluctuation. Some enterprises without enough capitals have been forced to other industries or close and the competitiveness of the exiting enterprises worsens both on the raw material purchasing and sales extending. It is the certain result of the market that survival of the fittest.
Different enterprises have their own analyses to the pressure from raw material purchasing and sales extending. The large-scale enterprises mainly bear the pressure from raw material purchasing while the smaller ones are influenced significantly by both the two factors with few regular consumers and limited brand influence. It requires the enterprises to create new thoughts and seek for new development.
AM: On the other hand, the domestic traders report to receive more inquiries as the buyers from Europe and Japan return to the market after the summer holiday. They plan to increase their prices and expect the price to rise further again in September. What do you think of the market trend in September according to the present situation?
W: Chinese antimony market started to rebound. Buyers from Europe have been returning to the market and send inquiries to purchase in September. The price is likely to increase further due to the increasing demand. Most producers hold no antinomy ingot inventory at present while some toll-traders have some in hand. Investors are sure to push the price further in order to obtain more profits but the price will not rise sharply due to the influence of the soft global economy and weak demand. The antinomy ingot price is predicted to increase to RMB97,000-98,000/t as the peak price in September.
AM: Some middle and small-scale enterprises with limit capital strength hold back from the market in succession after the sharp fluctuation in H1, 2011. Does your company plan to extend as a large-scale enterprise with strong capital strength and rich operation experiences for many years?
W: Some mines are planning to extend the capacity so far and the output of antinomy products is expected to increase in 3-5 years. However, it needs to think whether the downstream market to bear.
Huachang will focus on the deep processing of antinomy products such as the production of glycol antinomy and antinomy acetate. The demand for polyester catalyst continues rising with the development of polyester industry. I have confidence to the development of the market.
AM: Thank you again for accepting my interview.
W: Thank you all the same!