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
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March 25-26, 2021
Hangzhou, Zhejiang, China
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Changsha, Hunan, China
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May 23-24, 2019
Qingdao, Shandong, China
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May 16-17, 2019
Zhengzhou, Henan, China
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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
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May 21-22, 2018
Hainan Sanya, China
Interview with Yuan Siming, General Manager of Zhuzhou Mingri Cemented Carbide Co., Ltd
Zhuzhou Mingri cemented carbide Co., Ltd was established in May, 2001 with a total investment of RMB40 million. The company mainly produces cemented carbide products like wear parts and anti-skidding mandrel and its annual capacity is about 500 tons. Products are both sold in the domestic market and exported to America, European Union, Japan, Taiwan and Southeast Asia.
Yuan Siming: Cemented carbide industrial consolidation urgent
----Interview with Yuan Siming, General Manager of Zhuzhou Mingri Cemented Carbide Co., Ltd
Asian Metal: Thank you very much to accept this interview. Would you like to introduce your company briefly?
Yuan: Our company has run smoothly for eleven years since it was established in 2001. We have maintained good operation these years and it is anticipated to generate operating revenue of RMB120 million in 2012. This year, we have increased our production capacity by 20% to 300,000 tons per month to meet the rising demand. The company mainly produces cemented carbide products like wear parts, mould and anti-skidding mandrel and we take shares in both domestic and overseas markets.
Asian Metal: As a producing centre of cemented carbide, how does Zhuzhou develop in producing the products with the overall slow market this year?
Yuan: There are over 100 cemented carbide producers and traders in Zhuzhou with more than ten of them in Tianyuan district. The uncertain economic environment impacts on cemented carbide production as most mid-to-small enterprises only produce one type of product and they are less resistant to impact.
Asian Metal: Tungsten market has been running slowly since the end of last year and that is mainly because of weak demand in the cemented carbide sector. What can account for infrequent orders that come to cemented carbide producers in your opinion?
Yuan: Declining demand plays the most important role. With poor domestic economy, government acts to control real estate development and decelerate infrastructure construction like high-speed railways, which largely reduces consumption of cemented carbide. Therefore, it is normal to see overall recession and insufficient orders in the whole industry and almost all related enterprises are suffering from the sluggish market. Our sales to domestic market also decrease by 30% year-on-year though our market share gets an overall increase this year. The market is expected to see little recovery in H2.
Asian Metal: It is known that some producers are replacing protogenetic tungsten carbide powder with electrolytic materials to lower costs. What is your view on resource recycling and whether recycling tungsten carbide powder can take place of protogenetic materials totally?
Yuan: I am afraid that recycling tungsten carbide powder cannot take place of protogenetic materials totally for now because some advanced and hi-tech products need high-quality raw materials and recycling tungsten carbide powder cannot fulfill requirement. However, it is widely used in producing less advanced products as it can help reduce cost by over 20%.
Asian Metal: Most producers believe that the price of RMB303/kg (USD47.9/kg) for middle-sized tungsten carbide powder is still at high level at present. How do you anticipate the price trend in following days?
Yuan: I believe that tungsten carbide price is hard to keep stable due to weak demand but it will not present large decline in the near term as raw materials prices stay relatively firm. It may decline gradually to hit RMB290/kg (USD45.9/kg) should the market continue to be sluggish.
Asian Metal: Less advanced products generate low added value among the varied cemented carbide products. Which products are more competitive?
Yuan: The added value of export products is typically higher than that of products sold in domestic market. PCD, CBN, round bar and hi-tech products have high added value.
Asian Metal: As we know, there is big price difference between different cemented carbide products. What makes the difference?
Yuan: The price mainly depends on end product positioning and market competition. Profit is closely related with the usage of end product and consumers are satisfied with different price levels for cemented carbide products. How consumers respond to the price varies from region to region, even for same product. Another factor that has an effect on price is the production cost and supply condition.
Asian Metal: What is your comment on cemented carbide market consolidation and current price war?
Yuan: Consolidation is the only way for cemented carbide industry. Enterprises that have resources will inevitably extend industrial chain to downstream market and take more shares in end market. Meanwhile, many domestic producers are experiencing serious homogeneous competition and terrible price war. In this process, many enterprises encounter difficulty in operating and even die out. Industrial shuffle and consolidation will be main tone despite transformation and upgrading in certain enterprises.
Asian Metal: Do cemented carbide products have access to export rebates? What policies will government release to support private enterprises?
Yuan: Cemented carbide products have export rebates and government will not cancel it in the near future as export market keeps sluggish and many private enterprises are in hardship. Government will tend to give aid to high value-added hi-tech products to enhance better development for the industry.
Asian Metal: Thank you to accept this interview again and may your company better development!
Yuan: Thank you.
Yuan: Our company has run smoothly for eleven years since it was established in 2001. We have maintained good operation these years and it is anticipated to generate operating revenue of RMB120 million in 2012. This year, we have increased our production capacity by 20% to 300,000 tons per month to meet the rising demand. The company mainly produces cemented carbide products like wear parts, mould and anti-skidding mandrel and we take shares in both domestic and overseas markets.
Asian Metal: As a producing centre of cemented carbide, how does Zhuzhou develop in producing the products with the overall slow market this year?
Yuan: There are over 100 cemented carbide producers and traders in Zhuzhou with more than ten of them in Tianyuan district. The uncertain economic environment impacts on cemented carbide production as most mid-to-small enterprises only produce one type of product and they are less resistant to impact.
Asian Metal: Tungsten market has been running slowly since the end of last year and that is mainly because of weak demand in the cemented carbide sector. What can account for infrequent orders that come to cemented carbide producers in your opinion?
Yuan: Declining demand plays the most important role. With poor domestic economy, government acts to control real estate development and decelerate infrastructure construction like high-speed railways, which largely reduces consumption of cemented carbide. Therefore, it is normal to see overall recession and insufficient orders in the whole industry and almost all related enterprises are suffering from the sluggish market. Our sales to domestic market also decrease by 30% year-on-year though our market share gets an overall increase this year. The market is expected to see little recovery in H2.
Asian Metal: It is known that some producers are replacing protogenetic tungsten carbide powder with electrolytic materials to lower costs. What is your view on resource recycling and whether recycling tungsten carbide powder can take place of protogenetic materials totally?
Yuan: I am afraid that recycling tungsten carbide powder cannot take place of protogenetic materials totally for now because some advanced and hi-tech products need high-quality raw materials and recycling tungsten carbide powder cannot fulfill requirement. However, it is widely used in producing less advanced products as it can help reduce cost by over 20%.
Asian Metal: Most producers believe that the price of RMB303/kg (USD47.9/kg) for middle-sized tungsten carbide powder is still at high level at present. How do you anticipate the price trend in following days?
Yuan: I believe that tungsten carbide price is hard to keep stable due to weak demand but it will not present large decline in the near term as raw materials prices stay relatively firm. It may decline gradually to hit RMB290/kg (USD45.9/kg) should the market continue to be sluggish.
Asian Metal: Less advanced products generate low added value among the varied cemented carbide products. Which products are more competitive?
Yuan: The added value of export products is typically higher than that of products sold in domestic market. PCD, CBN, round bar and hi-tech products have high added value.
Asian Metal: As we know, there is big price difference between different cemented carbide products. What makes the difference?
Yuan: The price mainly depends on end product positioning and market competition. Profit is closely related with the usage of end product and consumers are satisfied with different price levels for cemented carbide products. How consumers respond to the price varies from region to region, even for same product. Another factor that has an effect on price is the production cost and supply condition.
Asian Metal: What is your comment on cemented carbide market consolidation and current price war?
Yuan: Consolidation is the only way for cemented carbide industry. Enterprises that have resources will inevitably extend industrial chain to downstream market and take more shares in end market. Meanwhile, many domestic producers are experiencing serious homogeneous competition and terrible price war. In this process, many enterprises encounter difficulty in operating and even die out. Industrial shuffle and consolidation will be main tone despite transformation and upgrading in certain enterprises.
Asian Metal: Do cemented carbide products have access to export rebates? What policies will government release to support private enterprises?
Yuan: Cemented carbide products have export rebates and government will not cancel it in the near future as export market keeps sluggish and many private enterprises are in hardship. Government will tend to give aid to high value-added hi-tech products to enhance better development for the industry.
Asian Metal: Thank you to accept this interview again and may your company better development!
Yuan: Thank you.