Prices for chromium metal to show stabilization until the end of 2018
----Interview with Shuteev Aleksandr Leonidovich Deputy Manager of Sales MidUral Group
MidUral Group is a vertically-integrated chemical and metallurgical group of companies specializing in production of intermediate alloys and ferroalloys in Russia, as well as in manufacturing of chemical chromic-based products.
Asian Metal: Hello Aleksandr Leonidovich, thank you very much for accepting the interview with Asian Metal. Would you please give us a brief introduction to MidUral Group?
Aleksandr Leonidovich: MidUral Group is a vertically-integrated chemical and metallurgical group of companies specializing in production of intermediate alloys and ferroalloys, as well as in manufacturing of chemical chromic-based products. MidUral has production assets and trading subsidiaries in six countries on forth continents. Group has strong market position in key markets: 20%market share of global chromium metal market 25%market share of global ultralow carbon ferrochromium market 20%market share of global chromium oxide production (excluding China) 30%market share of global K group vitamin production Russian Monopolist producing FerroBoron and more than 17 alloys
Asian Metal: Would you please talk about the current situation of Russian and CIS chromium metal market?
Aleksandr Leonidovich: As far as I know, the total consumption volume of chromium metal in CIS countries is about 160tpm currently. The main consumers are the steel mills, which produce special steel for aviation industry and nuclear industry. There are two chromium metal producers in Russia such as Kluchevskiy Ferroalloys Plant from our Group and JSC "NPCC" (Joint Stock Company "Novotroitsk Plant of Chromium Compounds") in Novotroitsk with a monthly output of about 800-1000t per factory.
Asian Metal: I know that your company also produces other ferroalloys, could you please introduce current state of your production?
Aleksandr Leonidovich: Currently, our company produces about five products as following: 1. Chromium metal: monthly production capacity of about 1,000t with an output of 800tpm currently 2. LC ferrochrome, C 0.1-0.25%: monthly production capacity of about 1,200t with an output of 1,000tpm currently 3. HC ferrochrome 65-70%min: monthly production capacity of about 100t with an output of 100tpm currently 4. Ferrotitanium 30-35%min: monthly production capacity of about 200t with an output of 60tpm currently 5. Ferroboron 20%min: monthly production capacity of about 80t with an output of 10tpm currently Our products are mainly used to produce special steels for different fields, such as aviation industry, automobile manufacturing, nuclear energy, hydraulic power, machinery and machine tools and so on. We can also produce some other ferroalloys and metal alloys based on firm orders. You can learn more information on our website http://www.MidUral Group.com.
Asian Metal: The export price for chromium metal has increased sharply since early March from Chinese suppliers affected by rising prices in the overseas market, especially, by Russian export prices. What do you think of it? What are the reasons for the increase?
Aleksandr Leonidovich: I think that it is a delayed response of the sharp increase of chromium ore price in 2016 from USD200/t to USD400/t. The second reason is that demand volume for chromium alloys and chromium superalloys from aviation industry and largest Holdings Pratt & Whitney, Rolls-Royce, General Electric has increased. In addition to, the long-term Agreements between Turkey Holding company Yildirim and our Midural Group also affected the price in the spot market. Yildirim is one of major producers of chromium ore in the world.
Asian Metal: What do you think of the chromium metal price in the near future? The price would go up further?
Aleksandr Leonidovich: I think that the price would be adjusted in a range of 30% from the highest price after current increase this year, and then the price would remain stable until the end of 2018.
Asian Metal: What are the advantages of your products compared with others'?
Aleksandr Leonidovich: The key advantage is the high quality of our all products. Our ferroalloys or metals have been produced with a high purity. For example, LC ferrochrome contains 75% Cr, but the products from other producers generally are 65-68%. The impurity is about two times lower than others, such as, Si0.5%, Cu 0.2%, P 0.05% and so on.
Asian Metal: What do you think of the prospects of your products?
Aleksandr Leonidovich: As mentioned above, our products are mainly used in aviation industry, automobile manufacturing, nuclear energy, hydraulic power, machinery and machine tools and so on. Of course, the products have broad development prospects.
Asian Metal: Does the recent economic sanctions from US against Russia affect your business?
Aleksandr Leonidovich: We have a stable relationship with our clients and it doesn't affect our business.
Asian Metal: Thank you for this interview and wish Midural Group better development in the future.
