Improve productivity and dedicate to high-purity products

Asian Metal: Hi, Mr. Ma, could you please introduce your business briefly at first?

Mr. Ma: Our business is mainly divided into two parts. The first is about the production for high-purity bulk silicon, which includes silicon 3N, 4N, 1101, 2202 and 3103; the second is about the production for silicon metal powder, which is applied in the new energy and refractory industries and supplied for solar energy, electronics and ceramic users.

Asian Metal: I heard that you have entered the silicon metal powder industry for a long time. So could you give us an overview of the Chinese silicon metal powder market?

Mr. Ma: Firstly, the material, silicon metal - no matter organosilicon or polysilicon - shall be grinded before used in the electronics, ceramic and refractory industries except for the casting one. Therefore, the demand for silicon metal powder is large. Secondly, the demand and supply are stable in the silicon metal powder market. Thirdly, with consumption of the material increasing, I think that companies with reasonable utilization, enough capital and superior location would develop better, while minor companies might be eliminated.

Asian Metal: What’s the capacity for silicon metal powder of your company?

Mr. Ma: Our annual capacity for the material is about 100,000t currently.

Asian Metal: Do you have any output increase or plant expansion plan in the future?

Mr. Ma: We keep on increasing outputs, especially in Xining and Urumqi. Our outputs for silicon metal powder would increase by at least 50,000t next year. In addition, we plan to produce high-grade bulk silicon and silicon metal powder of 3N, 4N, 5N and 6N, expecting to achieve 10,000tpy after the start of next year.

Asian Metal: Since early 2017, prices for raw materials such as cathodes and silicon-coal have risen sharply, and silicon metal prices have increased quickly since early July. How do you think about its influence on silicon metal powder producers?

Mr. Ma: Prices for silicon metal powder surged pushed by the price rise of raw materials and environmental protection inspections; however, those would finally be determined by supply and demand in the market. If the prices constantly hover at the high level emerged in August, overseas customers might increase outputs and meanwhile cut purchases from China, leaving a sluggish export market for China. Thus, it is necessary to hold the prices in a reasonable range in order to guarantee normal domestic production and stable overseas capacity.

Asian Metal: Silicon metal prices began to fall back in late August and early September. How do you perceive the market outlook of the material?

Mr. Ma: I believe that prices for silicon metal 5-5-3 and 4-4-1 have been close to the production cost line and the prices of RMB11,000-12,000/t (USD1,668-1,820/t) would not exist. However, if the prices continued to stay at the low level, producers would surely suffer losses. The environmental protection inspections had resulted in a rise in the production cost of silicon metal; selling prices for the material therefore should increase accordingly. Then producers could guarantee normal production. The prices for high grade material should be adjusted more.

Asian Metal: Could you give us an introduction to your company’s future development?

Mr. Ma: First of all, we shall continue to expand our capacity for silicon metal powder and expect to see an increase of 50,000t at least by 2018 with new projects launched. Next, we will devote ourselves to producing high-grade bulk silicon and silicon metal powder including 3N, 4N, 5N and 6N. We have studied the production technique for seven to eight years and applied for five national patents, preparing to make scale production this year. Besides, we will reduce production cost by enhancing the utility efficiency.

Asian Metal: Thank you for accepting our interview again. Wish your business prosperous!