Interview with Yang Huaiyu, General Manager of China Hunan High Broad New Material Co., Ltd
Established in year 2006 China Hunan High Broad New Material Co., Ltd is a professional company for manufacturing and trading non-ferro alloys including Manganese products, Magnesium products and other new materials products. The Manganese products include Electrolytic Manganese Metal Flakes, Manganese Metal Lumps, Manganese Briquettes and Manganese Additive etc. After the export tax policy on flakes and lumps issued, we turned to focus on exporting manganese briquettes and domestic trading of manganese lumps. We manage to ensure the manganese briquettes with high quality, 100% fulfill the contract, and have high reputation among the worldwide clients.
Yang Huaiyu: Manganese industry prospects look good
----Interview with Yang Huaiyu, General Manager of China Hunan High Broad New Material Co., Ltd
Asian Metal: First of all, thank you for the interview and your support for us. Your company mainly produces Manganese briquettes. Could you briefly introduce the manganese briquette market in the past year?
Yang: Thank you!
In the 1st half of this year, the manganese briquettes business recovered from the economic crisis, but still developed slowly. Especially after the rebate of manganese briquettes cancelled in July, the export business was nearly stopped. It had a big negative influence on the international market. However, thanks to rigid demand in the market, the export business goes better and better in the 2nd half of this year. With enlarged demand, more and more consumers want to buy the manganese briquettes. Further more, we are keeping improving the producing technology and quality so that our products can well meet various demands from different consumers. Therefore, we have better sales in the 2nd of year 2010.
Asian Metal: Manganese flake is closely related with manganese briquette, could you simply
Yang: In year 2010, the global economy recovered step by step, the demand of domestic and international market was gradually increased. So manganese flake production capacity and export volume was also increased. On the whole, the domestic market always developed better than the international market. Since the effect of the inflation in China and the policy of energy saving and mission reduction, the price of the manganese metal is changing quickly and has big range this year. But as per we said, the rigid demand supports the price to reach a high level. The electrolytic manganese metal plants have to speed up the transformation of the production technology, and close down backward production facilities in the industry, reduce energy consumption and pollutant emissions, support the government policies, so that the sustainability of electrolytic manganese metal industry will be improved.
Asian Metal: What about your capacity, output and location of the plants in 2010?
Yang: Our production capacity is around 1500mt per month, and the output is around 1200mt per month. Our plants are located in Changsha city and Yueyang city, Hunan province.
Asian Metal: How about you plan in the following year? Do you plan to enlarge your capacity and market sales?
Yang: We will keep enlarging the manganese briquettes and other corresponding products export business, and plan to enlarge the export scale and destination countries in year 2011.
Asian Metal: Since that more orders of manganese briquettes have been concluded and electrolytic manganese metal exports are shrinking, what do you think of the future electrolytic manganese metal and manganese briquette export market?
Yang: The manganese briquettes price does have a little advantage compared to electrolytic manganese metal flakes export prices, so it has a certain attraction to customers. But in fact, many foreign large factories still use electrolytic manganese metal flakes, depending on the willingness of the factories, adjust the production process to use of briquettes instead of flakes. Based on the fact og some illegal behaviors in exporting of manganese flakes, the price difference between the briquettes and flakes is not so big. There are certain end-users to use the manganese briquettes in certain field. In light of the export market, the share of exports of manganese briquettes peach is not large; concerning the global market, the share is even negligible. I believe that, with steady economic recovery, the foreign steel factory demand for manganese metal products will further increase. The export of briquettes and flakes will be simultaneously increased.
Asian Metal: What do you think of the export tax of manganese briquette?
Yang: In recent years, China government was keeping export tax imposed on the resources products, but it can not increase the tax indefinitely. In order to maintain the steady growth of the industry, I hope, either the manganese briquettes or other resources products would be able to maintain a stable tariff policy in the future.
Asian Metal: What is your export output in 2010? What do you think of it compared with 2009?
Yang: Our export of manganese briquettes in 2010 is 8,500 tons, with an increase of 30% compared with 2009. We were still in the aftershocks of economic crisis in year 2009, so the export market was not good, but by the second half of this year, the demand for manganese briquettes has been gradually restored.
Asian metal: What about the current price of electrolytic manganese metal and manganese briquettes? And the trend?
Yang: The current normal price is about USD3500/t FOB China, but the actual international market price is far lower than the normal one. FOB price of manganese briquettes is around USD2900-3000/t FOB China. At present, the manganese metal price is on a relative high level and should be stabilized before the Spring Festival.
Asian metal: Could you analyze the reason for the fluctuation of electrolytic manganese metal?
Yang: Yes, actually we do not expect the highest ex-factory price can reach RMB18,800/t ex works, we ever thought the price would break down to RMB14,000/t ex works. It seems that the industries policies of state electricity, taxes, resources and environmental protection had a great impact on the manganese price. At the same time, the overall economy, along with plants & traders’ speculation, make a significant impact of the price fluctuations of manganese metal.
Asian Metal: What is the impact of reduction of energy emission and power in the year 2010?
Yang: During the process of production, we had been focusing on the reduction of energy conservation and environmental protection under the premise of improving quality, energy reduction saving mainly caused the short-term market reduced supply, moved up the prices, and brought some problems to our business operations. But in the long run, this is an effective means of integration of manganese resources and conducive to the healthy development of the whole industry.
Asian Metal: Are you affected by RMB revaluation and credit policy?
Yang: RMB Revaluation has a great influence on the export business, which directly leads to our profits shrinkage because we have plenty of funds, the credit policy is no significant effect on our company.
Asian Metal: Could you predict the developing trend of manganese briquettes market?
Yang: Traditionally, all enterprises are planning to have stock before the end of each year, the manganese prices are expected to be steady but may be rise a little.
Asian Metal: Thank you for your interview and support to our company again. May you develop better and better!
Yang: Thank you.