Tin ore shortage to further boom global tin recycling in 2020
----Interview with Zhao Huadi General Manager Zhejiang Suichang Huijin Nonferrous Metals Co., Ltd.
Located in Maotian Industrial Zone, Suichang, Zhejiang and founded in May 2011, Zhejiang Suichang Huijin Nonferrous Metal Co., Ltd. (hereinafter referred to as Huijin Company) is a resource comprehensive utilization enterprise that recycles tin, copper, gold, silver, platinum, palladium and other nonferrous, rare and precious metals from nonferrous metal scrap. Covering an area of around 57,333 square meters, the company is a Lishui-based owner of hazardous solid waste business license and an environmental protection circular economy project that is encouraged by the state.
Asian Metal: Mr. Zhao, please give us a brief introduction of your company's development history and main business.
Mr. Zhao: I started working in this industry in 1996. Formerly known as Zhejiang Huiyuan Copper Industry Co., Ltd., Huijin Company covers an area of around 57,333 square meters and is engaged in the business of copper, gold, silver, platinum, palladium and so on. We began to develop the process of recycling valuable metals from anode slime in 2008 and settled down in Suichang as a key project in 2011. Founded in May 2011, Zhejiang Suichang Huijin Nonferrous Metal Co., Ltd. started construction of the project with an annual production capacity of 30,000 tons of copper cathode and 20,000 tons of hydrometallurgical copper in June 2011 and put the project into pilot production at the end of 2012. Then, the company decided to halt operation of its copper cathode production line as treatment charges for copper in both domestic market and overseas market declined sharply and production cost was higher than selling prices and focused on the anode slime resource comprehensive recycling project that mainly extracted metals. It conducted technological transformation on the project in 2013 for large-scale production of tin anode slime and silver slag and got the approval from provincial environmental protection department for hazardous waste business license with a scale of 17,000 tons per annum in November 2016. Huijin Company has been working in resource comprehensive utilization industry for over two decades and expects to expand operation in this field.
Asian Metal: How about your operation in 2019?
Mr. Zhao: Our operation met expectation in 2019. At the end of year, outputs of metals were basically in line with the production guidance set in early 2019 and achieved targets of the year. In 2019, our company totally produced more than 2,000 tons of tin ingot, more than 700 tons of copper cathode, about 1,500 tons of lead-antimony alloy, 400 tons of nickel sulfate and some associated precious metals and recorded an operating income of approximately RMB480 million (USD68.84 million) and a taxable income of RMB12 million (USD1.72 million).
Asian Metal: Tin smelting industry witnessed fierce competition in 2019. What are your advantages?
Mr. Zhao: We give better play to value of all metal elements after researching separation and extraction of metals for years and take a lead in direct recovery rate and recovery rate of metals in the industry. Always adhering to the ideas of science, environmental protection, innovation and development and developing in a high quality and green way by giving priority to environment, we strive for harmony and unity of enterprise, society and nature and try to realize joint development. We research and work in a down-to-earth manner and fight in the forefront of tin smelting and resource comprehensive utilization with the attitude and will in early days.
Asian Metal: What are your views about tin market in 2020?
Mr. Zhao: In 2019, tin market experienced unusual trend in recent years. Mine accidents in China resulted in decreasing supply of tin ore, relocation of tin solder plants led to lower supply of tin scrap and import volume from Myanmar dropped by about 20%. Tin ingot consumers lost confidence with the escalation of the China-U.S. trade friction and changeable China-U.S. relationship and reduced orders with a wait-and-see attitude. Acting as a connecting link, smelters were inactive in producing in 2019 due to high cost, lower treatment charges and pessimistic attitude of downstream consumers. As tin ore from Middle Asia and Myanmar will be imported to China in 2020, the market would see increasing supply. Even so, the increase cannot completely satisfy demand from Chinese smelters. The gap will absolutely trigger a fever for utilization of renewable metal resources again. As a pioneer and practitioner of the industry, we expect tin industry to go back to the good days before 2018 after the industry upgrading and integration in 2020.
Asian Metal: Please summarize tin smelting industry in one sentence.
Mr. Zhao: Tin ingot prices showed a trend of 'V' in 2019 under the influence of fierce competition for raw material, joint production cut of smelters, invasion of imported tin ingot and other factors, but tin is of unique end applications and cannot be replaced by other metals. After the industry integration and upgrading, we believe that tin industry will see a new dawn after those hard days.
Asian Metal: Some companies make purchases from Southeastern countries due to the supply shortage of renewable raw material. What are your opinions about this situation?
Mr. Zhao: China is absolutely a resource consumption power in terms of resource storage and development history. According to national policies on industry adjustment and environmental protection amid resource shortage, we have to recycle as much as metal minerals from metal scrap that is produced in the processes of smelting, production and processing and take advantage of them, which is considered an effective manner and the best way to develop circular economy and create a green earth. Our company is carrying out the mission now. Some companies' decision to source raw material from overseas suppliers conforms to laws of economics and is a result of competition. Undoubtedly, global trade will be the trend of integrated development in future. We will follow the trend and strengthen our business in renewable metal smelting industry.
Asian Metal: Your company is famous in renewable metal smelting industry. Could you share your development strategy for the following three years with us?
Mr. Zhao: Based on previous assets and business and on the premise of steady growth of output value, our company built a metal scrap resource comprehensive utilization project with an annual handling capacity of 150,000 tons in 2019, including 50,000 tons of hazardous waste and 100,000 tons of general solid waste, and plans to put it into production this June. In addition to steady growth in renewable metal smelting industry, we will deliver a better performance in hazardous waste and solid waste industry by practically following the ideas of reutilization, reduction and harmlessness.
Asian Metal: What will you do to prepare for the above strategy?
Mr. Zhao: On the basis of existing assets and team and in order to support the newly-built metal scrap resource comprehensive utilization project, we plan to purchase international-leading processing facilities to achieve the highest recovery rate and the most cost-effective input-output ratio, shorten investment payoff period and increase rate of return. Meanwhile, we will build more professional production, research, sales, warehousing and logistics teams under the guidance of current management team to realize seamless transition of all processes, give best play to intelligence advantage and experience advantage of talents, refine corporate management, standardize corporate system and maximize corporate efficiency.
Asian Metal: Please introduce your new project in details.
Mr. Zhao: Zhejiang Huijin Environmental Protection Technology Co., Ltd., a newly established wholly-owned subsidiary of Zhejiang Suichang Huijin Nonferrous Metals Co., Ltd., is managed by the parent company in terms of management system and employees. Covering an area of about 52,293 square meters and a construction area of 30,252 square meters in Longbanshan block of Dongcheng New District, the project owns a total investment of RMB200 million (USD28.68 million), including fixed assets worth RMB150 million (USD21.51 million), and will have an annual handling capacity of 150,000 tons of heavy metal scrap, including 50,000 tons of hazardous waste from nearby enterprises. Upon completion, the project will effectively solve waste disposal, hazardous waste disposal, environmental protection issues and other problems in surrounding areas and improve hazardous waste disposal as well as pollution prevention and control, guaranteeing resource utilization of waste.
Asian Metal: Thanks for your wonderful explanation and analysis. Wish Huijin Company a brighter future in environmental-friendly smelting and resource comprehensive utilization.
