12th Rare Earth Summit
May 27-28, 2021
Hangzhou, Zhejiang, China
11th Aluminum Raw Materials Summit
May 20-21, 2021
Hangzhou, Zhejiang, China
9th Magnesium Summit
April 15-16, 2021
Hangzhou, Zhejiang, China
13th World InBiGeGa Forum
March 25-26, 2021
Hangzhou, Zhejiang, China
7th World Antimony Forum
June 13-14, 2019
Changsha, Hunan, China
7th Refractory & Abrasive Materials Summit 2019
May 23-24, 2019
Qingdao, Shandong, China
10th Aluminum Raw Materials Summit
May 16-17, 2019
Zhengzhou, Henan, China
11th Rare Earth Summit
May 9-10, 2019
Qingdao, Shandong, China
8th Magnesium Summit
April 11-12, 2019
Zhuhai, Guangdong, China
12th World InBiGeGa Forum
March 14-15, 2019
Zhuhai, Guangdong, China
6th World Manganese & Selenium Forum
May 21-22, 2018
Hainan Sanya, China
Interview of Yang Chen, president of Baoji Zhongtian Peng Thai Metal Material Co., Ltd
Baoji Zhongtian Peng Thai Metal Material Co., Ltd focuses on research, production and sales of rare metal pipe, bar, plate, wire, pipe fitting and corrosion-resistant chemical equipments. Main products are widely used in oil, chemical, metallurgical, ship, medical, alkaline, galvanizing, papermaking, aerospace and aviation, as well as electric power industries. The company has independent export & import rights, and sells products to more than 20 Chinese domestic cities, and US, Japan, Korea, Southeast Asia and Africa. At the same time, the company has built strategic cooperation relationship with large-scale companies in Germany such as BASF Konzern.
Chen Yang: Titanium market to keep sluggish in Q3 and recover in Q4
----Interview of Yang Chen, president of Baoji Zhongtian Peng Thai Metal Material Co., Ltd
AM: Thank you very much for accepting this interview. Firstly, would you please introduce your company in general?
Mr. Chen: The company was founded in 2008 with registered capital of RMB10.42 million and total assets of RMB30 million, and now has a staff of 68. In fact, the company had been engaged in metal production for a long time before its foundation. The company is a leading titanium pipe producer after Baoji Titanium Co., Ltd. It has subsidiaries in East, South and Northeast China, as well as in Baoji, which are under specially-assigned managers. The company focuses on production of titanium, zirconium and nickel pipe, bar, plate and pipe fitting. The company uses titanium sponge to produce pipe, which accounts small proportion; or uses pipe billet for production according to requests from consumers, which accounts larger proportion. The company has increased investments on equipments in order to expand capacity, under the theme of honesty operation, and has built long-term cooperation relationship with foreign companies.
AM: Generally speaking, economy has kept at a low level since the beginning of this year. The titanium market remains sluggish at the same time. What is your opinion on the current titanium market?
Mr. Chen: Titanium market was not bad in H1 last year most participants stated that the market has been on downturn since H2 last year, leaving them small profit margin. Orders decrease sharply and even enquiries are not coming in, mirroring a glooming outlook. Some private companies, lacking long-term views, only go after short-term gains, especially under current sluggish market, which causes the market in chaos.
AM: What about the current development situation of your company under such grim circumstance?
Mr. Chen: The company continues to increase investments on equipments, which helps double out output. By the end of H1 this year, sales revenue has reached more than RMB16 million, which attributed to sincere operation and good relationship with consumers. However, orders have decreased significantly since July. Most deals are concluded with regular customers through negotiation. It is really hard to conclude deals if regular customers stop procurements.
AM: Foxconn starts to purchase large quantity of titanium wire as screw on Iphone is made from titanium wire. Hence, many titanium producers shift to titanium wire production. Does your company take part in?
Mr. Chen: Many companies wanted to cooperate with us when the project just started, but I was not optimistic about this project. Now that so many companies bound up in this project, the outlook becomes more uncertain. Our focus is the development of titanium pipe. Our supply cannot meet demand, so we will be glad if customers agree to extend delivery period. The company had produced titanium wire during the first three month but stopped in the later period as more specifications mean less fine. Hence, we only focuses on bar and pipe. In addition, we also supply titanium ingot to titanium wire producers.
AM: What is your opinion on titanium market in H2?
Mr. Chen: I hold negative attitude toward the market in Q3. The market is expected to keep sluggish during off season in Q3. Central government will carry out some new policies in order to cope with current economic situation, but it will take a long time for them to take effects during which the market remains quiet. However, the market is likely to warm up in Q4 as some producers will replenish inventories before the New Year. Hence, procurements will increase and the market is expected to recover.
AM: Does the company have any development plan as a successful demonstration?
Mr. Chen: We have plan to increase investment in 2-3 years but decide to keep unchanged our capacity in H2 as economic situation is not positive enough. Downstream consumers are mainly chemical plants and I believe that titanium market for civil use is sure to develop better. Industrial cluster has formed through several-year development, which offers opportunities for producers to cooperate. Integrity is important in both fixing price and choosing material. Only all participants insist “sincere operation” can this industry develop healthily!
AM: Thank you again for accepting this interview.
Mr. Chen: Thank you!
Mr. Chen: The company was founded in 2008 with registered capital of RMB10.42 million and total assets of RMB30 million, and now has a staff of 68. In fact, the company had been engaged in metal production for a long time before its foundation. The company is a leading titanium pipe producer after Baoji Titanium Co., Ltd. It has subsidiaries in East, South and Northeast China, as well as in Baoji, which are under specially-assigned managers. The company focuses on production of titanium, zirconium and nickel pipe, bar, plate and pipe fitting. The company uses titanium sponge to produce pipe, which accounts small proportion; or uses pipe billet for production according to requests from consumers, which accounts larger proportion. The company has increased investments on equipments in order to expand capacity, under the theme of honesty operation, and has built long-term cooperation relationship with foreign companies.
AM: Generally speaking, economy has kept at a low level since the beginning of this year. The titanium market remains sluggish at the same time. What is your opinion on the current titanium market?
Mr. Chen: Titanium market was not bad in H1 last year most participants stated that the market has been on downturn since H2 last year, leaving them small profit margin. Orders decrease sharply and even enquiries are not coming in, mirroring a glooming outlook. Some private companies, lacking long-term views, only go after short-term gains, especially under current sluggish market, which causes the market in chaos.
AM: What about the current development situation of your company under such grim circumstance?
Mr. Chen: The company continues to increase investments on equipments, which helps double out output. By the end of H1 this year, sales revenue has reached more than RMB16 million, which attributed to sincere operation and good relationship with consumers. However, orders have decreased significantly since July. Most deals are concluded with regular customers through negotiation. It is really hard to conclude deals if regular customers stop procurements.
AM: Foxconn starts to purchase large quantity of titanium wire as screw on Iphone is made from titanium wire. Hence, many titanium producers shift to titanium wire production. Does your company take part in?
Mr. Chen: Many companies wanted to cooperate with us when the project just started, but I was not optimistic about this project. Now that so many companies bound up in this project, the outlook becomes more uncertain. Our focus is the development of titanium pipe. Our supply cannot meet demand, so we will be glad if customers agree to extend delivery period. The company had produced titanium wire during the first three month but stopped in the later period as more specifications mean less fine. Hence, we only focuses on bar and pipe. In addition, we also supply titanium ingot to titanium wire producers.
AM: What is your opinion on titanium market in H2?
Mr. Chen: I hold negative attitude toward the market in Q3. The market is expected to keep sluggish during off season in Q3. Central government will carry out some new policies in order to cope with current economic situation, but it will take a long time for them to take effects during which the market remains quiet. However, the market is likely to warm up in Q4 as some producers will replenish inventories before the New Year. Hence, procurements will increase and the market is expected to recover.
AM: Does the company have any development plan as a successful demonstration?
Mr. Chen: We have plan to increase investment in 2-3 years but decide to keep unchanged our capacity in H2 as economic situation is not positive enough. Downstream consumers are mainly chemical plants and I believe that titanium market for civil use is sure to develop better. Industrial cluster has formed through several-year development, which offers opportunities for producers to cooperate. Integrity is important in both fixing price and choosing material. Only all participants insist “sincere operation” can this industry develop healthily!
AM: Thank you again for accepting this interview.
Mr. Chen: Thank you!