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 Zhang Yinlin, General Manager of Ding Ding Baoji Titanium Products Co., Ltd.
Baoji Dingding Titanium products Co., Ltd. is a professional production manufacturer of titanium products, and the company mainly produces titanium rod, alloyed titanium bar, titanium tube, titanium plate, alloyed titanium tube, titanium wire, titanium standard parts, titanium rings, titanium band, titanium target, etc. This company originated from Jiuding Titanium products factory in Jintai district, Baoji city, and now it is a titanium production industrial company through 10 years of hard work.
Zhang Yinlin: Titanium wire market to keep flourishing
----Interview with Zhang Yinlin, General Manager of Ding Ding Baoji Titanium Products Co., Ltd.
Asian Metal: Thank you very much for accepting this interview. Could you please introduce your company briefly?
Zhang: Ding Ding Baoji Titanium Products Co., Ltd originated from Jiuding Titanium Products Factory in Jingtai District, Baoji City and has grown into a production industrial company after 10 years of development. The company mainly produces titanium alloy materials and products are used in high-end fields such as aerospace, oil exploration and medical equipment with high requirements from consumers, of high technical content and complicated process, and the products face little competition despite high risks. However, there are many civil titanium factories whose products require lower restriction on quality and less technical content, and they just focus on products’ composition and price competition. Moreover, 60% of our titanium products are used in petroleum industry, 20% are used in aerospace, and 20% are consumed in medical industry. There is also certain pure titanium materials being consumed in chemical equipments. Whilst, 80% of our titanium products are for domestic sale, and 20% are exported. There has been such industrial chain and industrial cluster in Baoji. So cost is not very high. In addition, we also have researched and developed many new products and obtained a number of domestic inventive patents under the guidance of University of Petroleum.
Asian Metal: The market in Baoji is in full swing due to the purchase project for titanium wire in Foxconn. Did your company participate in the project?
Zhang: I heard the news of the project in April and confirmed that in June. The company began to mass-produce titanium wire 2.4mm in July. There are many companies joining in the projects in Baoji and factories from Taiwan, Suzhou and Shenzhen also purchase the material in Baoji. But it is not good that so many companies are involved in the project. Some companies optimistically anticipated that the project will continue into October at the earliest and it may continue through this year or into next year. Other companies like Samsung is likely to use titanium wire to produce screw. We cannot assure it but have to watch the market at the moment. The project of Foxconn will create large profits with high added value for producers and traders, and thus it will continue to keep hot in the near future.
Asian Metal: Will you raise purchasing volume of titanium sponge due to increasing production of titanium wire in your company?
Zhang: Yes. We purchased 10t of grade zero titanium sponge last month and 10t of grade one titanium sponge this month for the project of Foxconn. As far as I know, values for titanium tetrachloride and magnesium ingot keep stable, which is an indication that titanium sponge producers are unlikely to cut prices or accept lower offers despite that few titanium products companies are purchasing titanium sponge. It is difficult for titanium sponge producers to operate normally as they hold huge inventories. Major producers quoted the price of grade one titanium sponge over RMB70,000/t, and lower level for grade zero and off-grade one titanium sponge with inferior quality. Civil-used titanium products do not require much in quality of titanium sponge, and 80-90% of the metal used in producing chemical equipments is grade four or grade five titanium sponge with prices around RMB50,000/t. However, we produce high-quality titanium alloy and we have to purchase high grade titanium sponge to meet performance requirements of our products.
Asian Metal: Titanium market has been sluggish since the beginning of the year and the price keeps stable. Could you analyze current status of the market?
Zhang: The market is much weaker than it was last year. Demand kept good in H1, 2011 but the market has been dim since H2, 2011. Not only titanium market but also other metal materials market keep sluggish at present, which brings little impact to us as we mainly produce downstream titanium finished product while the change is always significant in prices of upstream raw materials. The whole titanium market went down from January to July, and orders from Foxconn stimulated the market in June and July. The market will be more sluggish without the project, and the market will be clear after the project being finished. The market shows some signs of recovery as more orders emerge this month compared with those of last month. We have received fewer orders about other titanium related products with Foxconn project being fufilled. Producers increase production rather than cut output thanks to the project. There are at least an increase of more than 200 drawbench in Baoji. But it is not good that so many companies are participating in the project, especially some nonprofessional producers joining in blindly. We are still carrying out long-term orders, and the project will bring more profits with more employments.
Asian Metal: What do you think about the market in second half of this year?
Zhang: It is the third quarter now, and producers are still carrying out orders of titanium wire for Foxconn. Thus the market will keep hot in Q3 and producers will not suspend supplying titanium wire in the short-term. The trend will continue into September or October while procurement of other materials will keep weak. Titanium products market is uncertain and it is difficult to forecast the market in Q4. The government has not announced policies to stimulate the market with poor economic situation. Thus the market is unlikely to recover in Q4. However, producers typically replenish inventory at the end of a year, so procurement will probably improve then.
Asian Metal: Do you have any plan after the project of Foxconn being finished?
Zhang: We have been producing titanium alloy materials for defense, medical and petroleum industries and the quality of the material is the same as that of titanium wire required by Foxconn. Thus our production will not be influenced when the project is finished. We just purchase another 20t of titanium sponge except 10t in stock. We will only suffer from more inventory when the project is over and we can use it up in one or two months according to our regular consumption level. The company will insist on steady development after the project being finished and we will not change the plan of production in the near future considering current situation and unclear market outlook.
Asian Metal: Thank you again for your support and cooperation!
Zhang: Thanks!
Zhang: Ding Ding Baoji Titanium Products Co., Ltd originated from Jiuding Titanium Products Factory in Jingtai District, Baoji City and has grown into a production industrial company after 10 years of development. The company mainly produces titanium alloy materials and products are used in high-end fields such as aerospace, oil exploration and medical equipment with high requirements from consumers, of high technical content and complicated process, and the products face little competition despite high risks. However, there are many civil titanium factories whose products require lower restriction on quality and less technical content, and they just focus on products’ composition and price competition. Moreover, 60% of our titanium products are used in petroleum industry, 20% are used in aerospace, and 20% are consumed in medical industry. There is also certain pure titanium materials being consumed in chemical equipments. Whilst, 80% of our titanium products are for domestic sale, and 20% are exported. There has been such industrial chain and industrial cluster in Baoji. So cost is not very high. In addition, we also have researched and developed many new products and obtained a number of domestic inventive patents under the guidance of University of Petroleum.
Asian Metal: The market in Baoji is in full swing due to the purchase project for titanium wire in Foxconn. Did your company participate in the project?
Zhang: I heard the news of the project in April and confirmed that in June. The company began to mass-produce titanium wire 2.4mm in July. There are many companies joining in the projects in Baoji and factories from Taiwan, Suzhou and Shenzhen also purchase the material in Baoji. But it is not good that so many companies are involved in the project. Some companies optimistically anticipated that the project will continue into October at the earliest and it may continue through this year or into next year. Other companies like Samsung is likely to use titanium wire to produce screw. We cannot assure it but have to watch the market at the moment. The project of Foxconn will create large profits with high added value for producers and traders, and thus it will continue to keep hot in the near future.
Asian Metal: Will you raise purchasing volume of titanium sponge due to increasing production of titanium wire in your company?
Zhang: Yes. We purchased 10t of grade zero titanium sponge last month and 10t of grade one titanium sponge this month for the project of Foxconn. As far as I know, values for titanium tetrachloride and magnesium ingot keep stable, which is an indication that titanium sponge producers are unlikely to cut prices or accept lower offers despite that few titanium products companies are purchasing titanium sponge. It is difficult for titanium sponge producers to operate normally as they hold huge inventories. Major producers quoted the price of grade one titanium sponge over RMB70,000/t, and lower level for grade zero and off-grade one titanium sponge with inferior quality. Civil-used titanium products do not require much in quality of titanium sponge, and 80-90% of the metal used in producing chemical equipments is grade four or grade five titanium sponge with prices around RMB50,000/t. However, we produce high-quality titanium alloy and we have to purchase high grade titanium sponge to meet performance requirements of our products.
Asian Metal: Titanium market has been sluggish since the beginning of the year and the price keeps stable. Could you analyze current status of the market?
Zhang: The market is much weaker than it was last year. Demand kept good in H1, 2011 but the market has been dim since H2, 2011. Not only titanium market but also other metal materials market keep sluggish at present, which brings little impact to us as we mainly produce downstream titanium finished product while the change is always significant in prices of upstream raw materials. The whole titanium market went down from January to July, and orders from Foxconn stimulated the market in June and July. The market will be more sluggish without the project, and the market will be clear after the project being finished. The market shows some signs of recovery as more orders emerge this month compared with those of last month. We have received fewer orders about other titanium related products with Foxconn project being fufilled. Producers increase production rather than cut output thanks to the project. There are at least an increase of more than 200 drawbench in Baoji. But it is not good that so many companies are participating in the project, especially some nonprofessional producers joining in blindly. We are still carrying out long-term orders, and the project will bring more profits with more employments.
Asian Metal: What do you think about the market in second half of this year?
Zhang: It is the third quarter now, and producers are still carrying out orders of titanium wire for Foxconn. Thus the market will keep hot in Q3 and producers will not suspend supplying titanium wire in the short-term. The trend will continue into September or October while procurement of other materials will keep weak. Titanium products market is uncertain and it is difficult to forecast the market in Q4. The government has not announced policies to stimulate the market with poor economic situation. Thus the market is unlikely to recover in Q4. However, producers typically replenish inventory at the end of a year, so procurement will probably improve then.
Asian Metal: Do you have any plan after the project of Foxconn being finished?
Zhang: We have been producing titanium alloy materials for defense, medical and petroleum industries and the quality of the material is the same as that of titanium wire required by Foxconn. Thus our production will not be influenced when the project is finished. We just purchase another 20t of titanium sponge except 10t in stock. We will only suffer from more inventory when the project is over and we can use it up in one or two months according to our regular consumption level. The company will insist on steady development after the project being finished and we will not change the plan of production in the near future considering current situation and unclear market outlook.
Asian Metal: Thank you again for your support and cooperation!
Zhang: Thanks!