Asian Metal: Mr. Jia, thanks for joining the interview. Kindly please give a brief introduction of your business.

Mr. Jia: We focus on production of aluminum fluoride, hydrofluoric acid, fluorspar and related chemical fluoride products. The production capacity of aluminum fluoride and hydrofluoric acid reaches 45,000tpy and 50,000tpy respectively while the capacity for high purity fluoride salts touches 33,000tpy.

Asian Metal: Since early February, Chinese aluminum fluoride prices went down. How do you think of the price in late February?

Mr. Jia: Yes, some producers accepted RMB9,000/t delivered, but we maintain the offer of RMB9,500/t delivered, declining any prices below RMB9,300/t delivered, and prefer to shut down in case of any lower prices. I believe prices would rise to around RMB10,000/t delivered soon, as many aluminum fluoride producers in Zibo of Shandong shut down from the middle of March attacked by the COVID-19 lockdown.

Asian Metal: Since early February, the primary aluminum prices increased significantly, but the aluminum fluoride price dropped. Could you explain the reasons?

Mr. Jia: Firstly, the production volume increased. Because of the slipped hydrofluoric acid price, many producers turned to production of aluminum fluoride and the operating rate in January climbed by about 10% MoM. In addition, the purchase demand remained flat.

Asian Metal: How about the present production cost? Any losses for aluminum fluoride producers?

Mr. Jia: The cost gets close to RMB9,500/t delivered, as the price of liquid natural gas doubled to RMB9,000/t delivered over the past two months.

Asian Metal: Are there any suggestions for aluminum fluoride producers under the current market situation?

Mr. Jia: I think the best and most effective way is to cut production and control operating rates. Based on the current operating rate, producers should cut by around 10% further. We plan to shut down for equipment maintenance as well.

Asian Metal: Will the price slip in China weigh on the export price? Do you have any plan for the export this year? How about the export quantity of your company in 2021?

Mr. Jia: The price slip in China would benefit Chinese export prices and improve the export competitivity. But the current price of RMB9,500/t delivered in China remains higher than long-term contracts prices of USD1,400-1,500/t FOB Europe. Over the past two years, Chinese export volume reduced as the price was not competitive compared with prices in Europe, where the production cost was relative stable. Our export volume accounted for around 13% in 2021 and the proportion might keep unchanged this year.

Asian Metal: Although many aluminum smelters in Europe cut production last year, new aluminum projects in India, Indonesia and Malaysia would launch operation this year. Will that benefit Chinese aluminum fluoride exports?

Mr. Jia: Yes, it would help to boost the export market to some extent but not significantly, as Malaysia had been importing aluminum fluoride from China and new aluminum projects from other countries accounted for small shares.

Asian Metal: As the only aluminum fluoride producer in Hebei, will you expand production in the coming three years?

Mr. Jia: In terms of aluminum fluoride, we do not plan to expand production capacity for the huge supply in China. In the future, we would focus on production of high purity inorganic fluoric salts and pursue diversified paths, creating an enterprise with most kinds of inorganic fluoric salts products in China.

Asian Metal: What is your outlook for Chinese domestic and export prices of aluminum fluoride in 2022?

Mr. Jia: In Q1, the price would show a downward trend because of the increased operating rates. The price in the following quarters would depend on Chinese producers' operating rates.

Asian Metal: Thanks, Mr. Jia. I believe your company would have new breakthroughs both at home and abroad in 2022.

Mr. Jia: Thanks very much!