Asian Metal visits some silicomanganese companies in Ningxia

On August 23-24, Helen Guo, analyst of manganese alloys and ores of Asian Metal and Bata Chen, associate analyst of manganese alloys and ores of Asian Metal visited Ningxia Jiyuan Metallurgy Co., Ltd., Ningxia Sam In Ningyuda Metallurgy Co., Ltd., Niangxia Pingluo Country Changhong Metallurgy Co., Ltd., Ningxia Shengyan Industrial Group, Ningxia Jinjing Metallurgicals Industrial Co., Ltd., Ningxia Shizuishan City Huinong Hongfeng Industry and Trade Co., Ltd., and Ningxia Shizuishan City Huiyi Metallurgy Industry and Trade Co., Ltd., seven producers of silicomanganese in Ningxia.

On the afternoon of August 23, Helen Guo and Bata Chen visited Ningxia Jiyuan Metallurgy Co., Ltd.. The company produces silicomanganese 65/17 and ferronickel. But now the smelter is out of operation due to the low spot prices. Mo Hongjun, the GM of the company and Ning Zhongliang, the Vice GM of the company received Helen Guo and Bata Chen. Mr. Mo stated that the silicomanganese market is unlikely to turn better during the rest of this year considering the whole economy in China currently.

Later, Helen Guo and Bata Chen visited Ningxia Sam In Ningyuda Metallurgy Co., Ltd. and were received by the GM Wang Xinwu and Vice GM Lei Hu. The company produces silicomanganese mainly, and they also supply some nodulizers and special alloys to customers from Japan and South Korea. There are two furnaces of 8,000kwa and two furnaces of 12,500kwa, but now only one furnace of 12,500kwa is running to maintain the supply for regular users due to the sluggish market. Mr. Wang feels pessimistic about the future market and predicts that demand for silicomanganese will keep slow in the coming months.

Then, Helen Guo and Bata Chen visited Niangxia Pingluo Country Changhong Metallurgy Co., Ltd.. Mr. Zhou Tao, the GM of the company introduced that the smelter is producing silicomanganese 65/17 normally with two furnaces as they have stable distribution channels. However, there are narrow profits for them to gain now due to the low concluded prices.

Finally, Helen Guo and Bata Chen visited Ningxia Shengyan Industrial Group. Ms. Deng Xiaodong, the marketing minister of the company, introduced that the company produces silicomanganese 65/17, manganese slag, local manganese ore and coal. The output of silicomanganese 65/17 keeps at above 10,000tpm. As they have resources, the company enjoys a stronger anti-risks capacity than others. Ms. Deng cited that they have no plan to reduce output even though the current market remains sluggish.

On the morning of August 24, Helen Guo and Bata Chen visited Ningxia Jinjing Metallurgicals Industrial Co., Ltd.. Mr. Xie Jitao, the marketing manager of the company, introduced that the company mainly produces silicomanganese and silicon carbide. The company has built two furnaces of 60,000kwa for ferrochrome or silicomanganese production, but now the company is out of operation due to sluggish market and financial pressure. Mr. Xie is pessimistic about the market in the rest of this year and thinks the producers are experiencing a more dim market than that of 2008.

Later, Helen Guo and Bata Chen visited Ningxia Shizuishan City Huinong Hongfeng Industry and Trade Co., Ltd. later. Mr. Liu Jinzhong, the marketing manager of the company, introduced that the company produces silicomanganese 65/17 and ferrosilicon with two furnaces. Currently, the spot prices have touched their operation cost and it is hard to maintain the operation. Mr. Liu stated that they will consider shutting down if the prices decline further next month.

At last, Helen Guo and Bata Chen visited Ningxia Shizuishan City Huiyi Metallurgy Industry and Trade Co., Ltd.. Mr. Wan Yonggang, the CFO of the company, introduced that the company mainly produces silicomanganese, ferrosilicon and ferronickel etc.. Now the company is under great pressure of maintaining operation is heavy and he expects that the market condition will not improve in a short term.