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May 27-28, 2021
Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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May 9-10, 2019
Qingdao, Shandong, China
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Zhuhai, Guangdong, China
12th World InBiGeGa Forum
March 14-15, 2019
Zhuhai, Guangdong, China
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Hainan Sanya, China
Interview with Deng Shikang, General Manager of Guangxi Qinzhou Jiahua Mining Co., Ltd.
Guangxi Qinzhou Jiahua Mining Co., Ltd. is located in Qinzhou, Guangxi, a city having well-developed transport in southwest China, and the headquarter is 500m east from administrative information center of the city. Jiahua Mining mainly processes mining products and imports and exports mining products from other countries. As a medium sized enterprise, the company plans to develop other businesses such as wharf warehouse, real estate and collectivizing upscale restaurants, etc. Jiahua Mining started exploitation and processing in 1993, and it developed rapidly in the past twenty years. With over 300 mu of production base and a rutile titanium dioxide plant with capacity of 120,000tpy, the company mainly engages in zircon sand (powder), ilmenite, rutile, monazite, iron and manganese, etc.
Deng Shikang: Vietnamese titanium ore price to stabilize in H2
----Interview with Deng Shikang, General Manager of Guangxi Qinzhou Jiahua Mining Co., Ltd.
Asian Metal: Thank you very much for accepting this interview. Could you introduce current status of Chinese titanium ore market?
Deng: Thanks!
Domestic titanium ore market keeps sluggish presently impacted by the gloomy macro-environment. Downstream markets, such as titanium dioxide and titanium metal, are experiencing weak demand influenced by overseas debt crisis and the change of interest rate of bank. Thus demand for titanium products and titanium dioxide declines and consumption for titanium keeps dim. On the other hand, as a main exporter of titanium ore to China, Vietnam announced export ban for the material from July, and Chinese domestic market is badly impacted by this policy. So I am pessimistic about titanium market this year.
Asian Metal: Why did Vietnam limit export of titanium, and will the country resume exporting the material in the future?
Deng: Vietnam imposed restrictions on titanium ore exporting as early as 2007 when the market picked up, and the price increased from several hundred yuan per ton to RMB2,000-3,000/t. When international titanium ore market became flourishing around 2009, Vietnam began to limit export for the material to develop domestic downstream industry in order to add additional value. However, it was the government's plan. In fact, economy was weak in Vietnam at that time. Local enterprises possessed neither technology nor capital, with only a few state-owned enterprises able to produce high titanium slag and reduced titanium, while private companies witnessed no development. Hence, the government delayed announcing the export ban, and the country continued to export titanium ore from 2010 to early 2012.
At the end of 2011, the Vietnamese government banned titanium ore export again considering that better local economy and technology will drive the development of downstream market, and only a few state-owned enterprises owned export quotas of merely processed products such as titanium dioxide, high titanium slag and zircon powder.
It is uncertain if Vietnam will resume exporting in the future, while the country will cut export volumes significantly from the second half of this year till the period of Spring Festival. Moreover, downstream products of the country are immature, and the technology and equipments are in the period of experimenting with poor quality. Policies announced by the government are uncertain, and the country may make less profit in exporting than deep processing. Export policy of titanium ore is likely to be adjusted in the coming year.
Asian Metal: Which countries will Vietnam exports its downstream products to, if any?
Deng: Downstream products are mainly produced by some miners with equipments and technology imported from China, and thus the quality is similar to products produced in China. Vietnam will probably export to Asian and European countries.
Asian Metal: Will the ban influence Chinese titanium market significantly?
Deng: Chinese titanium ore is mainly imported from other countries, and the material imported from Vietnam accounts for around 30%. China imported about 300,000t of titanium from Vietnam in H1, 2012, while the volume will decrease greatly as the country limited exporting in H2. Chinese titanium market, especially titanium dioxide market will be negatively influenced.
However, influence of the ban will differ from that last time. Chinese economy keeps weak, and the government restricted real estate industry strictly, so demand for titanium dioxide declines. Values for titanium dioxide were reduced in previous days, and numbers will fluctuate in H2. Therefore, the price of upstream titanium ore is unlikely to increase with export ban from Vietnam undertaken. Demand for titanium dioxide was good with increment year by year as real estate developed rapidly in the past few years when Vietnam last time forbid exporting, so the price was pushed up significantly.
In this case, I think the ban will impact Chinese titanium ore market, but the price will change slightly within RMB200/t.
Asian Meta: Titanium ore in Qinzhou is mainly imported from Vietnam. Since the country announced export ban in July, is local market in Qinzhou influenced. Could you give us a brief introduction about the current market?
Deng: Suppliers in Qinzhou mainly import titanium from Vietnam with little material from in local market. However, it does not mean that the market will have no Vietnamese titanium ore from July as local suppliers hold large inventory of the material. Moreover, local participants will try to import titanium ore and raw materials in other ways. I believe that Qinzhou will become one of main titanium distributing centers in China.
There were around 300,000t of Vietnamese titanium ore delivered to Qinzhou port around the Spring Festival early this year which was ordered by Qinzhou-based dealers from February to April when domestic market saw tight supply with increased prices. Therefore, local participants imported the material from Vietnam, and some even scrambled for the material despite fast incresaing price.
However, after ordered titanium ore being delivered, domestic titanium ore market moved down, and some suppliers even offered the prices below costs. Dealers in Qinzhou have been reluctant to sell since June due to lower price. The market suspended operating, and only some small companies under financial pressure sell in small volumes in order to withdrawal funds. Hence, inventory kept at a high level in Qinzhou, and stocks of Vietnamese titanium ore amounted to over 100,000t in China.
Asian Metal: Does the company consider deep processing when it is difficult to sell titanium ore?
Deng: Yes. We plan to do deep processing presently. The company has built a plant of titanium dioxide cooperating with Akers Nobel to produce sulfuric acid titanium dioxide with capacity of 120,000t. The plant has been prepared to construct and will be put into production at the end of the year. I hope the products will be accepted by domestic participants, and I expect downstream companies to cooperate with us.
Asian Metal: The company is looking for new breakthrough and development. Wish titanium dioxide business of Jiahua Mining a better future!
Deng: Thank you!
Deng: Thanks!
Domestic titanium ore market keeps sluggish presently impacted by the gloomy macro-environment. Downstream markets, such as titanium dioxide and titanium metal, are experiencing weak demand influenced by overseas debt crisis and the change of interest rate of bank. Thus demand for titanium products and titanium dioxide declines and consumption for titanium keeps dim. On the other hand, as a main exporter of titanium ore to China, Vietnam announced export ban for the material from July, and Chinese domestic market is badly impacted by this policy. So I am pessimistic about titanium market this year.
Asian Metal: Why did Vietnam limit export of titanium, and will the country resume exporting the material in the future?
Deng: Vietnam imposed restrictions on titanium ore exporting as early as 2007 when the market picked up, and the price increased from several hundred yuan per ton to RMB2,000-3,000/t. When international titanium ore market became flourishing around 2009, Vietnam began to limit export for the material to develop domestic downstream industry in order to add additional value. However, it was the government's plan. In fact, economy was weak in Vietnam at that time. Local enterprises possessed neither technology nor capital, with only a few state-owned enterprises able to produce high titanium slag and reduced titanium, while private companies witnessed no development. Hence, the government delayed announcing the export ban, and the country continued to export titanium ore from 2010 to early 2012.
At the end of 2011, the Vietnamese government banned titanium ore export again considering that better local economy and technology will drive the development of downstream market, and only a few state-owned enterprises owned export quotas of merely processed products such as titanium dioxide, high titanium slag and zircon powder.
It is uncertain if Vietnam will resume exporting in the future, while the country will cut export volumes significantly from the second half of this year till the period of Spring Festival. Moreover, downstream products of the country are immature, and the technology and equipments are in the period of experimenting with poor quality. Policies announced by the government are uncertain, and the country may make less profit in exporting than deep processing. Export policy of titanium ore is likely to be adjusted in the coming year.
Asian Metal: Which countries will Vietnam exports its downstream products to, if any?
Deng: Downstream products are mainly produced by some miners with equipments and technology imported from China, and thus the quality is similar to products produced in China. Vietnam will probably export to Asian and European countries.
Asian Metal: Will the ban influence Chinese titanium market significantly?
Deng: Chinese titanium ore is mainly imported from other countries, and the material imported from Vietnam accounts for around 30%. China imported about 300,000t of titanium from Vietnam in H1, 2012, while the volume will decrease greatly as the country limited exporting in H2. Chinese titanium market, especially titanium dioxide market will be negatively influenced.
However, influence of the ban will differ from that last time. Chinese economy keeps weak, and the government restricted real estate industry strictly, so demand for titanium dioxide declines. Values for titanium dioxide were reduced in previous days, and numbers will fluctuate in H2. Therefore, the price of upstream titanium ore is unlikely to increase with export ban from Vietnam undertaken. Demand for titanium dioxide was good with increment year by year as real estate developed rapidly in the past few years when Vietnam last time forbid exporting, so the price was pushed up significantly.
In this case, I think the ban will impact Chinese titanium ore market, but the price will change slightly within RMB200/t.
Asian Meta: Titanium ore in Qinzhou is mainly imported from Vietnam. Since the country announced export ban in July, is local market in Qinzhou influenced. Could you give us a brief introduction about the current market?
Deng: Suppliers in Qinzhou mainly import titanium from Vietnam with little material from in local market. However, it does not mean that the market will have no Vietnamese titanium ore from July as local suppliers hold large inventory of the material. Moreover, local participants will try to import titanium ore and raw materials in other ways. I believe that Qinzhou will become one of main titanium distributing centers in China.
There were around 300,000t of Vietnamese titanium ore delivered to Qinzhou port around the Spring Festival early this year which was ordered by Qinzhou-based dealers from February to April when domestic market saw tight supply with increased prices. Therefore, local participants imported the material from Vietnam, and some even scrambled for the material despite fast incresaing price.
However, after ordered titanium ore being delivered, domestic titanium ore market moved down, and some suppliers even offered the prices below costs. Dealers in Qinzhou have been reluctant to sell since June due to lower price. The market suspended operating, and only some small companies under financial pressure sell in small volumes in order to withdrawal funds. Hence, inventory kept at a high level in Qinzhou, and stocks of Vietnamese titanium ore amounted to over 100,000t in China.
Asian Metal: Does the company consider deep processing when it is difficult to sell titanium ore?
Deng: Yes. We plan to do deep processing presently. The company has built a plant of titanium dioxide cooperating with Akers Nobel to produce sulfuric acid titanium dioxide with capacity of 120,000t. The plant has been prepared to construct and will be put into production at the end of the year. I hope the products will be accepted by domestic participants, and I expect downstream companies to cooperate with us.
Asian Metal: The company is looking for new breakthrough and development. Wish titanium dioxide business of Jiahua Mining a better future!
Deng: Thank you!