Wu Meixi: Chinese selenium prices are expected to rebound in Q2 of 2014

Asian Metal: Good day, Miss Wu. Thank you for granting this interview. Could you please make a brief introduction of your company?

Wu: Our Company combines metal material processing, development and sales as one. We are engaged in the import and export of the goods and technology, and mainly deal in non-ferrous metals, minerals, additives, paints, chemical products; we have perfect management mechanism, complete infrastructure, and comprehensive services.

"Truth-seeking, innovation, efficiency, excellence" is the spirit of enterprise. Our aim is to provide customers with high-quality, low-priced products under the principle of integrity. In this line, perhaps our price is the lowest, but the products at the same quality, our prices and service is the best choice for customers.

Asian Metal: How do you think of the recent supply and demand of selenium powder and selenium dioxide?

Wu: As we know, China is now the world’s largest consumer of selenium powder. And according to data released by the China customs, China imported over 1,700 tons of selenium in 2013, ranking the first. Meanwhile, Chinese domestic selenium outputs reached 1,500 tons in the same year. So the market is oversupply if we simply compare volumes of outputs and the demand. However, it is worth noting that selenium is an accessory during the process of copper production, and it is convenient for the material to be long-preserved. Consequently, copper plants will reduce the turnover substantially when the prices are below expectation, which means the actual supply does not equal the output.

In addition, the supply of Chinese selenium dioxide was 1,600-1,700 tons in 2013, basically balanced with the demand.

Asian Metal: What are the main applications of selenium and selenium dioxide?

Wu: Generally speaking, selenium dioxide, glass, ceramic and hull cell are the four primary downstream products of selenium powder.

Among them, selenium dioxide is mainly applied in manganese flake production, surface treatment of copper and iron, feed additive production, and production of medicines like selenious acid sodium and sodium selenate. 70% of selenium dioxide is used in manganese flake production in China now, with 30% being supplied to the later three fields.

I believe in a broader market prospect for selenium application in hull cells, because people’s awareness of protecting the environment is improving in China and the government is also enhancing efforts to reduce non-environmental production activities. Therefore, our company endeavors to study the manufacturing methods for high-purity selenium.

Asian Metal: What is your view on price fluctuations of selenium after the Spring Festival?

Wu: I think price fluctuation in the past two months underscores the affection of supply and demand, as well as psychological changes among participants. Specifically, the price increase after the Spring Festival was rather pulled by expectation of suppliers than on the basis of demand from end users. On the contrary, the fall back reflects that the intangible market discipline is making rectification to the deflected price pathway. Therefore, the whole price fluctuation should be regarded as a strong warning to market participants.

Asian Metal: How do you evaluate the affect from selenium stockpile by Fanya Metal Exchange?

Wu: From the perspective of industry development, trading on electronic platform represents the further trend of minor metal business. The entrance of Fanya Metal Exchange will strike the current operating and trading pattern of selenium market and bring in many investors beyond the industry. Overall, this event will certainly help in broadening application of selenium, as well as strengthening its reserve function.

Asian Metal: Do you expect selenium prices to rebound in Q2?

Wu: Selenium market is still under pressure at this moment since downstream industries have not shown obvious signs of reviving due to the unfavorable overall economy situation. However, I learnt that Fanya Exchange will settle down cooperation with several leading selenium suppliers in China in April, which is expected to provide motivation for selenium prices to rebound in Q2 of this year.

Asian Metal: We appreciate your support giving us your valuable time and we wish a bright future for Zhonggui.