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May 27-28, 2021
Hangzhou, Zhejiang, China
11th Aluminum Raw Materials Summit
May 20-21, 2021
Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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10th Aluminum Raw Materials Summit
May 16-17, 2019
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11th Rare Earth Summit
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
6th World Manganese & Selenium Forum
May 21-22, 2018
Hainan Sanya, China
Interview with Xu Keding, General Manager of Jiangyan Yuanhang Metal Products Co.,Ltd.
Jiangyan Yuanhang Metal Products Co.,Ltd. is located in Jiangyan, Jiangsu. The company is highly experienced in producing tungsten and molybdenum products, and the good quality is widely acknowledged. The company is customer oriented and always takes the customers' concern as the top priority.
Xu Keding: Sodium tungstate market will be bullish in 2011
----Interview with Xu Keding, General Manager of Jiangyan Yuanhang Metal Products Co.,Ltd.
Asian Metal: Thank you for accepting the interview with Asian Metal, Mr xu! What are main products in your company, and how about production capacity?
Xu: We mainly produce sodium tungstate and sodium molybdate. The production capacity of sodium tungstate is 30 tons per month. Due to weak demand, the output is 20 tons per month nowadays.
Asian Metal: Can you give a brief review about sodium tungstate market from 2010?
Xu: The market was sluggish in June and July in 2010, and then the demand was improved from August with higher prices. From the Spring Festival to the end of March 2011, sodium tungstate price rose by 30%. Producers are confident about the future market. The main drive for the higher sodium tungsten tungstate price is the rising raw material price. However, the demand remains weak.
Asian Metal: Which industry has the biggest consumption of sodium tungstate and what is the consumers’ feedback for the high prices?
Xu: Sodium tungstate is mainly used to produce pigment and pesticide. Producing pigment results high pollution to the environment and Chinese government restricts the export volume of the material. Pesticide industry developed quickly from 2005 to 2006, and the demand of sodium tungstate was strong. Nevertheless, the market became saturated and demand of sodium tungstate decreased after 2008. In the current sodium tungstate market, supply exceeds demand, and the main drive for higher prices is the higher cost of raw material rather than good demand.
Asian Metal: Wolframite 65%min price increased from the beginning of last year, and keeps stable at RMB130,000/t (USD306/mtu). Some sodium tungstate producers use tungsten scraps as raw material for reducing production cost. What is your opinion about reducing production cost?
Xu: Tungsten concentrate, tungsten scraps and APT can be used to produce sodium tungstate. The materials which will be sold in the foreign market are of high quality, and usually are made from tungsten concentrate or APT. Wolfrmaite 65%min price is RMB130,000/t (USD306/mtu) now, and the production cost of sodium tungstate 96%min would be over RMB154,000/t (USD24.6/kg) if we use wolfrmaite 65%min as raw material. The price should be RMB160,000/t (USD25.5/kg) for maintaining a profit margin. APT price is RMB201,000/t (USD348/mtu), and sodium tungstate 96%min price should be at least RMB180,000/t (USD28.7/kg) if we use APT as raw material.
I think there are several ways to reduce production cost:
1. We could extend our production upwards. At the moment, we purchase tungsten scraps as raw material, and later we could set up a recycling program to get tungsten scraps ourselves.
2. We could update our techniques in reducing molybdenum content in sodium tungstate. With improved quality, our products could be sold with wider profit margin.
3. Meanwhile, we could increase our stocks of raw material when price is low.
4. Improving efficiency and reduce manpower costs.
5. Improving production technology and raise the utilization rate of tungsten.
Asian Metal: What is your opinion about the 2011 sodium tungstate market?
Xu: Sodium tungstate market has improved from the beginning of 2011 and the demand increases. We exported 10t of the materials in 2010, and the exporting volume is expected to be 50t in 2011. When the price of tungsten scraps 90%min WO3 was RMB1,200/mtu (USD184/mtu), we purchased a lot and still have 15 tons on hand. The price of sodium tungstate 96%min reaches RMB140,000/t (USD22.3/kg) now, and we are consuming the same raw material we bought earlier. The profit is RMB30,000/t (USD4.8/kg) now. The current price of tungsten scraps 90%min WO3 is RMB1,800/mtu(USD276/mtu), and we can obtain the materials at RMB1,700-1,750/mtu (USD260-268/mtu) from regular suppliers. We purchased 30 tons of tungsten scraps recently, and if we can control the production cost, the profit will increase this year. In the end of 2010, price of sodium tungstate was in the range of RMB100,000-110,000/t (USD16.0-17.5/kg); our profit was around RMB5,000/t (USD0.8/kg). The sodium tungstate price already climbed to RMB140,000/t (USD22.3/kg), and our profit is close to RMB30,000/t (USD4.8/kg). The current price of tungsten scraps 90%min WO3 is RMB1,800/mtu (USD276/mtu), and we can obtain the materials at RMB1,700-1,750/mtu (USD260-268/mtu) from regular suppliers with cash. We purchased 30 tons of tungsten scraps recently. If we can control the production cost carefully, the profit will increase this year.
Asian Metal: Can you give a brief introduction about sodium tungstate foreign market and Chinese export policy?
Xu: Normally, the foreign consumers purchase raw material in big volumes twice a year. They increase purchasing volume in April and May for preparing production during summer break season. After September, they purchase the materials for production before Christmas holiday. Sodium tungstate producers need exporting license for selling materials in foreign market, and VAT rate is 17%. Most producers do not have exporting licenses and leave it to trade corporations.
Asian Metal: Does Japanese earthquake influence the sodium tungstate market?
Xu: Janpanese earthquake does little influence to the sodium tungstate market. China exports most of the materials to Europe. The earthquake harms automobile, spraying material and cemented carbide industries. The demand for APT and tungsten carbide may decrease.
Asian Metal: What is your plan for the company’s development in near future?
Xu: We plan to set up tungsten scraps recycling line to process tungsten scraps by ourselves for reducing production cost this year.
Asian Metal: Thanks for your time!
Xu: You are welcome.
Xu: We mainly produce sodium tungstate and sodium molybdate. The production capacity of sodium tungstate is 30 tons per month. Due to weak demand, the output is 20 tons per month nowadays.
Asian Metal: Can you give a brief review about sodium tungstate market from 2010?
Xu: The market was sluggish in June and July in 2010, and then the demand was improved from August with higher prices. From the Spring Festival to the end of March 2011, sodium tungstate price rose by 30%. Producers are confident about the future market. The main drive for the higher sodium tungsten tungstate price is the rising raw material price. However, the demand remains weak.
Asian Metal: Which industry has the biggest consumption of sodium tungstate and what is the consumers’ feedback for the high prices?
Xu: Sodium tungstate is mainly used to produce pigment and pesticide. Producing pigment results high pollution to the environment and Chinese government restricts the export volume of the material. Pesticide industry developed quickly from 2005 to 2006, and the demand of sodium tungstate was strong. Nevertheless, the market became saturated and demand of sodium tungstate decreased after 2008. In the current sodium tungstate market, supply exceeds demand, and the main drive for higher prices is the higher cost of raw material rather than good demand.
Asian Metal: Wolframite 65%min price increased from the beginning of last year, and keeps stable at RMB130,000/t (USD306/mtu). Some sodium tungstate producers use tungsten scraps as raw material for reducing production cost. What is your opinion about reducing production cost?
Xu: Tungsten concentrate, tungsten scraps and APT can be used to produce sodium tungstate. The materials which will be sold in the foreign market are of high quality, and usually are made from tungsten concentrate or APT. Wolfrmaite 65%min price is RMB130,000/t (USD306/mtu) now, and the production cost of sodium tungstate 96%min would be over RMB154,000/t (USD24.6/kg) if we use wolfrmaite 65%min as raw material. The price should be RMB160,000/t (USD25.5/kg) for maintaining a profit margin. APT price is RMB201,000/t (USD348/mtu), and sodium tungstate 96%min price should be at least RMB180,000/t (USD28.7/kg) if we use APT as raw material.
I think there are several ways to reduce production cost:
1. We could extend our production upwards. At the moment, we purchase tungsten scraps as raw material, and later we could set up a recycling program to get tungsten scraps ourselves.
2. We could update our techniques in reducing molybdenum content in sodium tungstate. With improved quality, our products could be sold with wider profit margin.
3. Meanwhile, we could increase our stocks of raw material when price is low.
4. Improving efficiency and reduce manpower costs.
5. Improving production technology and raise the utilization rate of tungsten.
Asian Metal: What is your opinion about the 2011 sodium tungstate market?
Xu: Sodium tungstate market has improved from the beginning of 2011 and the demand increases. We exported 10t of the materials in 2010, and the exporting volume is expected to be 50t in 2011. When the price of tungsten scraps 90%min WO3 was RMB1,200/mtu (USD184/mtu), we purchased a lot and still have 15 tons on hand. The price of sodium tungstate 96%min reaches RMB140,000/t (USD22.3/kg) now, and we are consuming the same raw material we bought earlier. The profit is RMB30,000/t (USD4.8/kg) now. The current price of tungsten scraps 90%min WO3 is RMB1,800/mtu(USD276/mtu), and we can obtain the materials at RMB1,700-1,750/mtu (USD260-268/mtu) from regular suppliers. We purchased 30 tons of tungsten scraps recently, and if we can control the production cost, the profit will increase this year. In the end of 2010, price of sodium tungstate was in the range of RMB100,000-110,000/t (USD16.0-17.5/kg); our profit was around RMB5,000/t (USD0.8/kg). The sodium tungstate price already climbed to RMB140,000/t (USD22.3/kg), and our profit is close to RMB30,000/t (USD4.8/kg). The current price of tungsten scraps 90%min WO3 is RMB1,800/mtu (USD276/mtu), and we can obtain the materials at RMB1,700-1,750/mtu (USD260-268/mtu) from regular suppliers with cash. We purchased 30 tons of tungsten scraps recently. If we can control the production cost carefully, the profit will increase this year.
Asian Metal: Can you give a brief introduction about sodium tungstate foreign market and Chinese export policy?
Xu: Normally, the foreign consumers purchase raw material in big volumes twice a year. They increase purchasing volume in April and May for preparing production during summer break season. After September, they purchase the materials for production before Christmas holiday. Sodium tungstate producers need exporting license for selling materials in foreign market, and VAT rate is 17%. Most producers do not have exporting licenses and leave it to trade corporations.
Asian Metal: Does Japanese earthquake influence the sodium tungstate market?
Xu: Janpanese earthquake does little influence to the sodium tungstate market. China exports most of the materials to Europe. The earthquake harms automobile, spraying material and cemented carbide industries. The demand for APT and tungsten carbide may decrease.
Asian Metal: What is your plan for the company’s development in near future?
Xu: We plan to set up tungsten scraps recycling line to process tungsten scraps by ourselves for reducing production cost this year.
Asian Metal: Thanks for your time!
Xu: You are welcome.