Asian Metal visits Guangzhou Yusheng, Weiju Non-Ferrous, Golden Bull, Chengtai Chemical and First Rare Materials Co., Ltd.

Frank Chen, selenium and tellurium market analyst of Asian Metal visited Guangzhou Yusheng Chemical Co., Ltd., Foshan Weijun Non-Ferrous Metals Co., Ltd., Shaoguan Golden Bull Industry & Trading Co., Ltd., Dongguan Chengtai Chemical Co., Ltd. and First Rare Materials Co., Ltd. during June 19-20th, and was welcomed by the five enterprises.

On the morning of June 19, Frank visited Guangzhou Yusheng Chemical Co., Ltd. and Foshan Weijun Non-Ferrous Metals Co., Ltd. In Yusheng Chemical, Mr. Li Yu, the business manager, cited that several Chinese domestic copper plants have been active in processing refined selenium since the beginning of 2014, which has impacts on the import market. And they will keep low stocks of the material to avoid risks in view of weak demand from glass, ceramic and colored glaze industries. In Weijun Non-Ferrous, Mr. Huang Zhiqiang, the marketing manager told Asian Metal that they own production capacity of 300tpy and 50tpy respectively for selenium and tellurium. However, they are mainly producing according to orders now due to the unfavorable market performance. He also pointed out that psychological change of participants is the second reason for price fluctuation in the past few months apart from supply and demand.

On the afternoon of June 19, Frank visited Shaoguan Golden Bull Industry & Trading Co., Ltd. Mr. Tan Youdong, the general manager disclosed that they maintain long-term cooperation with a well-known overseas selenium supplier. But he shows worry about the future market and noted that selenium prices are still under pressure with demand slowing down while supply increasing.

On the morning of June 20, Asian Metal visited Dongguan Chengtai Chemical Co., Ltd. And Mr. Dong Wubin, the chairman, who is also one of the earliest selenium participants in China, believed that the adoption of deferred payment will gain much financial pressure on selenium suppliers. And he deemed China needs to speed up research and development of high-purity selenium products in order to catch up with technology leading countries.

On the afternoon of June 20, Asian Metal visited First Rare Materials Co., Ltd. and interviewed Mr. Zhu Shibin, the vice general manager. Mr. Zhu indicated that the company has kept stable outputs of 1,200-1,300tpy and 200-300tpy respectively for selenium and tellurium products in the recent two years. As for Fanya Metal Exchange’s listing the two materials, he thinks it will bring benefits to the industries in the long term, though 1-2 years are needed for the listing to have greater influence on the spot market.