Tony Gui: Turkish chrome ore prices will remain stable

Asian Metal: Thank you for taking the time to talk with Asian Metal. Could you please give a brief introduction of MHS Mining?

Tony: MHS Mining, is a Turkey based company , which focuses on mining and raw materials’ trading. We are committed to offering both product and service by a dynamic and dedicated team to respond our customers’ specific request within the shortest time with satisfactory prices and deliveries. Vast experience and a specialized team at MHS Mining offers clients a comprehensive material support. Close co-operation with carefully selected producers in Turkey and other producing countries.

Our aim is to serve best quality material with most reasonable prices and reliable service.

Asian Metal: What is MHS Mining’s position in the chrome industry?

Tony: Since her foundation in May, 2013, MHS Ming has kept holding the concept of offering our materials at best quality and best services with comparable price. Though MHS Mining may be new in the Chinese chrome market, her owner, Ms. Merve is well known to Chinese customers in the Chrome field for her good reputation during last ten years of active businesses in the Chinese chrome market as CEO of CVK, KOP Krom, Turchrome. So MHS Mining should be also one of biggest and best players in China chrome ore market for yearly supplying quantity of 200,000-500,000 tons.

Asian Metal: We understand that MHS Mining is the exclusive sales agent of CVK material; does that only apply to chrome ore? If so, do you have plans to extend your partnership with CVK for their lead, zinc and copper production?

Tony: As far as I think, all great businesses can be done on the basis of the good long-term cooperation, which can also be deemed as the reason why CVK chose us as her exclusive sales agent. Generally we are not limited with Chrome ore. Our main purpose is to become the leader of Turkish Market on every kind of raw materials. I believe our specialized team can fulfil any tough work with their expert experience and wisdom.

Asian Metal: What is the edge of MHS Mining compared with other exporters from Turkey?

Tony: MHS Mining are proud for their reputable credibility in China market. We are respecting all signed contracts and performing them accordingly well. And we are proud for that we can supply greater quantities of materials by big bulk vessels shipped to China for some big buyers. And we can offer our materials at more comparable prices with the best simultaneous services.

Asian Metal: The chrome markets in China have not been performing particularly well in 2013 and Q1 2014, what is your outlook for the remainders of 2014?

Tony: Owing to the Chinese economy entering a new mode of development in 2013 and 2014, the chrome market was still able to keep prices as stable as people expected instead of falling down in fast speed like in the other fields. It has something to do with the speedy growing demand for stainless steel from China and the world which can stabilize the prices in the chrome market to stop prices decreasing as fast as other materials. So it’s undoubted that chrome market can meet its regular development as before.

Asian Metal: We are seeing that the price gap between lumpy products (42-44%) and concentrate products (46-48%) narrowing down, why is that and do you believe this trend will continue?

Tony: The price gap should be mainly attributed to the price of South African concentrates falling a lot in the two years. More and more plants would like to use more S.A concentrates instead for its lower price. So the price of Turkish concentrates fell as well accordingly. However, due to the limited supply quantity of Turkish 40-42% lump and great demand for it, its price can stay in its usual popular state.

I think this trend can’t last long since the South African rand will depreciate against the Chinese Yuen.

Asian Metal: What is the biggest challenge facing and ahead by the Chinese ferrochrome industry and the Turkish chrome ore suppliers?

Tony: The biggest challenge is the environmental regulation policies on steel filed issued by the Chinese government. This challenge can also be deemed as a positive movement for the ferrochrome industry because it can help the ferrochrome industry be regulated in a more environmental friendly way for its long-term development.

Turkish chrome ore suppliers are still holding their conference at supplying more Turkish chrome ore regularly as before.

Asian Metal: Thank you for taking the time to conduct an interview with us and we wish MHS Mining a bright future.