COVID-19 stimulates demand for germanium metal

Asian Metal: Thank you for accepting the invitation of Asian Metal's "Interviews". First of all, please briefly introduce your company's business and your experience.

Mr. Xie: Huaihua Hongjiang Hengchang Germanium Technology Co., Ltd. was established in 2006 and mainly produces germanium dioxide and germanium metal. During 2015, we added a production line of 5tpy of single crystal germanium and single wafer.

I was engaged in medical work for more than 20 years, and took over the operation and management of Hengchang Germanium at the end of 2017. I sincerely thank the old employees of the company for their hard work and their supports, and also thank the experts, seniors and bosses in Germanium industry for their support and guidance!

Asian Metal: Mr. Xie, please briefly introduce your company's germanium product series and customer distribution.

Mr. Xie: The main products of Hengchang Germanium are germanium dioxide 99.999%min, with a production capacity of 20tpy, and germanium metal 99.999%min, with a production capacity of 15tpy. We only produce germanium single wafers by orders from consumers.

Due to factors such as market risks, operating capitals and my knowledge of the germanium industry, I recognize the cooperation mode of producing and trading.

Asian Metal: Due to the COVID-19 in the world in Q1 2020, the demand for germanium metal in infrared temperature measurement industry increased. How many tons of germanium metal would be consumed in this industry during 2020 as you predict?

Mr. Xie: In Q1 2020, due to the COVID-19, most of the global companies’ profits kept declining. Although the germanium metal's demand from infrared thermometer lenses industry increased slightly by about 3-5t from 2019, but we still are not optimistic about the demand in other areas.

Asian Metal: At present, the supply of germanium metal's raw materials becomes tight. Do you have such troubles currently?

Mr. Xie: Due to the impacts of environmental protection, safety and epidemic situation, the output of the raw materials dropped by more than 50% MOM and the prices kept increasing. Since early this year, Hengchang Germanium's profits are shrinking, but I believe this situation would be resolved slowly.

Asian Metal: What is your opinion of the price trend of germanium metal in Q3 and Q4 2020? Do you think that the supply of the raw material would greatly affect the price trend?

Mr. Xie: I believe that as all industries would quickly resume productions with the end of the COVID-19, the supply of raw materials would increase and the demand for germanium metal would also recover. The sufficient inventory from domestic suppliers would ensure the steady development of the industrial chain. So the prices would decline slightly during Q3-Q4 2020.

Asian Metal: What do you think are the growth points of the consumption of germanium metal in the next three years?

Mr. Xie: With the complicated and changing international political situation and the rapid development of high-tech, the growth points of germanium metal would still concentrates in infrared lenses and 5G optical fibers industries.

Asian Metal: What is your company's plan for the next three years?

Mr. Xie: We plan to increase the production capacity of germanium metal to 20tpy. Besides. we will further improve our products' qualities and reduce the production costs.

Asian Metal: Thank you again for sharing your opinions. Wish you a prosperous business!

Mr. Xie: Thanks again for the predecessors, experts and bosses of the germanium industry for constant concerning and support to Hengchang Germanium! Thank Asian Metal for the good platform and information service! Wish the germanium industry better and better!