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 with Meng Shaoxue, General Manager of High titanium Slag Plant of Yunnan Copper Group Titanium Co., Ltd.
Yunnan Copper Group Titanium Co., Ltd.registered in Luquan county, Kunming, Yunnan in December 30, 2008 with a registered capital of RMB100 million, engaging in selecting, smelting, processing of titanium and other non-ferrous metals, noble metal, non-metal ore, chemical products and lithotome. The company is focusing on production and process of high titanium slag, titanium concentrate and acid slag with abundant titanium ore resources The company has procured the exploration right and the mining right in Luquan county where reserves 4.52 million tons of titanium resource, forming an integral and scientific quality management system.
Meng Shaoxue: Technology and quality determine development of high titanium slag
----Interview with Meng Shaoxue, General Manager of High titanium Slag Plant of Yunnan Copper Group Titanium Co., Ltd.
Asian Metal: Thank you for accepting the interview. Would you mind sharing current macro economic status with us?
Meng: The overall economic situation is pessimistic. Though economic data did not drop largely in the first half of this year, I still believe that the fact is worse than the data shows. No matter metal industry or other industries, the situation is not optimistic. For titanium industry specifically, the softness situation can be seen from upstream titanium ore to downstream titanium products, and sales are worse than they were in previous years with price close to production cost. The whole industrial chain is pessimistic.
Asian Metal: What is current situation of domestic high titanium slag market under such circumstance?
Meng: The domestic market is still scrabbling and growing, even if there are not many producers in China and few of them are able to produce 3,000 tons or more per month. Meanwhile, with different quality of high titanium slag, the quality of the material in the whole domestic market is still low and the market lacks formal quality management system. Besides, the market is easily to go into a fuss shape as the market runs slow because participants aggressively jump into price war.
Asian Metal: Since current market is sluggish, how do you make development strategy for your company?
Meng: Our company is positioned for customized market, which requires extreme strictly for both production technology and product quality. Although our output is not high, we still enjoy smooth sales with high price despite the weak market and the soft demand on account of our good quality. Not only domestic users but also overseas users prefer to use our product, such as titanium enterprises in Singapore, Japan and South Korea, which have been in touch with us to buy our products.
Asian Metal: In other word, your company keeps competitive by high quality?
Meng: Yes. Our products are popular in domestic and overseas markets because of high quality and advanced production technology. Most domestic producers just aim at short-term profit, so they restrain investment on quality and technology, and they only produce low-quality products. For instance, high titanium slag 90%min is the most popular product in the market, and when we produce the product, we strictly follow all the requirement of consumers at each production link. So we are able to provide satisfying product for our clients who are able to produce high-quality downstream products with less consumption of raw material. However, most producers produce low-quality high titanium slag which are sold to consumers who will waste more raw material and feel unsmooth during the production for downstream products.
So we will keep the strategy at high-end customized market.
Asian Metal: High-end customized market has a bright future, and your company should have many unique advantages to develop in this way?
Meng: Yes. High-end customized development is not fit for every company as it needs some special advantages.
Firstly, our company is located in Luquan, Yunnan which is rich in titanium ore resources, and we enjoy abundant raw material resources with our own mines, preventing us from being controlled by others and also ensuring stable and reliable supply of raw material. In addition, we also take good advantage of Luquan-based resource with low radiation and low content of Ca and Mg.
Secondly, as a state-owned company, we are fully supported on technology and research, which is superior to many private enterprises on developing high-end customized products that requires large investment and long pay-back term.
Thirdly, as the company is affiliated to Yunnan Copper Group Titanium Co., Ltd., it enjoys advantages on both fund and technology.
Asian Metal: It seems that high-end customized guides new development patterns for high titanium slag market as well as benign development for domestic market.
Meng:Yes, it is. Most domestic products are mainly produced by common grade high titanium slag with low quality and technique, the value of which is lower that of foreign products. As a result, downstream consumers eliminate them from election which will severely influence the development process of high titanium slag market.
Taking Japanese products as example, their quality is at the highest end around the globe despite limited resources and high labor cost, so the products are priced higher and more welcome than Chinese ones. To sum up, low quality is main factor that keeps Chinese product out of international market, although we have abundant resources, cheaper labor forces and commodity prices.
As a result, only improved technology and quality can boost benign development of high titanium slag market in China and quickly to peak the industry, which is also the goal for our development.
Asian Metal: Would you like to share with us about your expectation on the market in H2?
Meng: The whole titanium market is unfavorable this year, and downstream demand drops significantly due to the sliding economy. So far, the economy has not signed any improvement, so I think, the market in H2 will be hard to see the previous strong momentum.
Asian Metal: Any advice for high titanium slag market?
Meng:I think, the long-term steady development of high titanium slag market must core on high quality and reasonable price, which, of course, requires upgraded regulation of the market by the government, and a clear and uniform product standard is required in order to conduct a benign development that improves quality and availability and lift price through good quality.
Asian Metal: Thanks again for your support to Asian Metal!
Meng: Thank you.
Meng: The overall economic situation is pessimistic. Though economic data did not drop largely in the first half of this year, I still believe that the fact is worse than the data shows. No matter metal industry or other industries, the situation is not optimistic. For titanium industry specifically, the softness situation can be seen from upstream titanium ore to downstream titanium products, and sales are worse than they were in previous years with price close to production cost. The whole industrial chain is pessimistic.
Asian Metal: What is current situation of domestic high titanium slag market under such circumstance?
Meng: The domestic market is still scrabbling and growing, even if there are not many producers in China and few of them are able to produce 3,000 tons or more per month. Meanwhile, with different quality of high titanium slag, the quality of the material in the whole domestic market is still low and the market lacks formal quality management system. Besides, the market is easily to go into a fuss shape as the market runs slow because participants aggressively jump into price war.
Asian Metal: Since current market is sluggish, how do you make development strategy for your company?
Meng: Our company is positioned for customized market, which requires extreme strictly for both production technology and product quality. Although our output is not high, we still enjoy smooth sales with high price despite the weak market and the soft demand on account of our good quality. Not only domestic users but also overseas users prefer to use our product, such as titanium enterprises in Singapore, Japan and South Korea, which have been in touch with us to buy our products.
Asian Metal: In other word, your company keeps competitive by high quality?
Meng: Yes. Our products are popular in domestic and overseas markets because of high quality and advanced production technology. Most domestic producers just aim at short-term profit, so they restrain investment on quality and technology, and they only produce low-quality products. For instance, high titanium slag 90%min is the most popular product in the market, and when we produce the product, we strictly follow all the requirement of consumers at each production link. So we are able to provide satisfying product for our clients who are able to produce high-quality downstream products with less consumption of raw material. However, most producers produce low-quality high titanium slag which are sold to consumers who will waste more raw material and feel unsmooth during the production for downstream products.
So we will keep the strategy at high-end customized market.
Asian Metal: High-end customized market has a bright future, and your company should have many unique advantages to develop in this way?
Meng: Yes. High-end customized development is not fit for every company as it needs some special advantages.
Firstly, our company is located in Luquan, Yunnan which is rich in titanium ore resources, and we enjoy abundant raw material resources with our own mines, preventing us from being controlled by others and also ensuring stable and reliable supply of raw material. In addition, we also take good advantage of Luquan-based resource with low radiation and low content of Ca and Mg.
Secondly, as a state-owned company, we are fully supported on technology and research, which is superior to many private enterprises on developing high-end customized products that requires large investment and long pay-back term.
Thirdly, as the company is affiliated to Yunnan Copper Group Titanium Co., Ltd., it enjoys advantages on both fund and technology.
Asian Metal: It seems that high-end customized guides new development patterns for high titanium slag market as well as benign development for domestic market.
Meng:Yes, it is. Most domestic products are mainly produced by common grade high titanium slag with low quality and technique, the value of which is lower that of foreign products. As a result, downstream consumers eliminate them from election which will severely influence the development process of high titanium slag market.
Taking Japanese products as example, their quality is at the highest end around the globe despite limited resources and high labor cost, so the products are priced higher and more welcome than Chinese ones. To sum up, low quality is main factor that keeps Chinese product out of international market, although we have abundant resources, cheaper labor forces and commodity prices.
As a result, only improved technology and quality can boost benign development of high titanium slag market in China and quickly to peak the industry, which is also the goal for our development.
Asian Metal: Would you like to share with us about your expectation on the market in H2?
Meng: The whole titanium market is unfavorable this year, and downstream demand drops significantly due to the sliding economy. So far, the economy has not signed any improvement, so I think, the market in H2 will be hard to see the previous strong momentum.
Asian Metal: Any advice for high titanium slag market?
Meng:I think, the long-term steady development of high titanium slag market must core on high quality and reasonable price, which, of course, requires upgraded regulation of the market by the government, and a clear and uniform product standard is required in order to conduct a benign development that improves quality and availability and lift price through good quality.
Asian Metal: Thanks again for your support to Asian Metal!
Meng: Thank you.