Demand for LC ferrochrome to rise in Q4
----Interview with Qiao Junfeng
General Manager
Inner Mongolia Risheng Zhibo Metallurgical Co., Ltd.
General Manager
Inner Mongolia Risheng Zhibo Metallurgical Co., Ltd.
Inner Mongolia Risheng Zhibo Metallurgical Co., Ltd. was set up after getting approval from the Industry and Information Technology Committee of Ulanqab. With a total investment of RMB225 million (USD32.94 million), the company is a ferroalloy producer with an annual output of 100,000t of chrome products.
Asian Metal: Hi Mr. Qiao, thank you for accepting our interview. Please give us a brief introduction about your company.
Mr. Qiao: Inner Mongolia Risheng Zhibo Metallurgical Co., Ltd. was set up after getting approval of the Industry and Information Technology Committee of Ulanqab. With a total investment of RMB225 million (USD32.94 million), our company is a ferroalloy producer with an annual production of 100,000t of chrome products such as HC ferrochrome, silicochromium and LC ferrochrome. We use advanced energy conservation and environmental protection facilities, and half-sealed cylindrical submerged arc furnaces, and have got the ISO9001:2015 certification. We have one submerged arc furnace of 25,500kva for HC ferrochrome production, one submerged arc furnace of 25,500kva for silicochromium production and three refining furnaces of 4000kva for LC ferrochrome production.
Asian Metal: Could you tell us something about your company's ferrochrome capacity and production, as well as the main customers at home and abroad?
Mr. Qiao: Since the commercial production in November 2017, our company produces 10,000t of HC ferrochrome, 35,000t of silicochromium and 50,000t of LC ferrochrome annually. We serve many domestic steel mills and traders as well as overseas customers.
Asian Metal: What was the impact of the COVID-19 on domestic demand for LC ferrochrome in the first three quarters? How did your company cope with?
Mr. Qiao: Impacted by the COVID-19 pandemic, LC ferrochrome supply was tight as producers in South China completely halted production. Although normal production could be maintained in North China, it was difficult to transport raw materials to plants under pandemic control and traffic restriction. Apparently, our company was also affected by the pandemic. Many upstream enterprises did not resume work, and the transportation of raw materials and products was blocked, so our company faced great challenges. However, we still strongly supported the pandemic prevention work and actively conducted pandemic prevention work. On the premise of ensuring the safety of our staff, we timely communicated with government departments to ensure the shipment of raw materials to our plant.
Asian Metal: How did the COVID-19 pandemic hit the export market of LC ferrochrome in the first three quarters?
Mr. Qiao: Demand for the material declined on the whole dampened by the COVID-19 pandemic in foreign countries, which resulted in less exports and lower export prices.
Asian Metal: How do you think of the demand and price of LC ferrochrome in the fourth quarter in China?
Mr. Qiao: I think the demand for LC ferrochrome will increase. At present, chrome ore suppliers show low willingness to cut prices and prefer to hold back from selling as the stainless steel market is improving; in addition, quotations for high grade Zimbabwean and Turkish chrome ore hold high. HC ferrochrome prices keep relatively firm and some silicochromium suppliers also raised quotations. It is difficult for LC ferrochrome suppliers to make profit by pressing down raw material prices, and the cost stays high in spite of weak demand. Therefore, there is limited room for LC ferrochrome prices to decrease in the future.
