Lv Bin: Cautious optimism about the demand for green silicon carbide rebound
----Interview with Lv Bin, Vice General Manager of Qinghai Henrida Silicon Carbide Co., Ltd.
- Located in Dongyuan Road of Xiachuankou Industry Zone in Minhe County, Qinghai Province, Qinghai Henriida Silicon Carbide Co., Ltd. was registered in May, 2009. The company mainly produces green silicon carbide and powder which are used to produce abrasives, linear cutting in photovoltaic industry, semiconductor material, industrial ceramics and fines grinding etc. Covering 40,000 square meters of space with 12,000 square meters of building area, the company has a staff of 290, including two senior engineers and eight technical experts. The company has four 12500KVA smelting production lines and 20 converters which can produce 45,000tpy of green silicon carbide and 15,000tpy of powder. Its products are accepted by new and regular clients and have passed ...
- Asian Metal: Thank you, Mr. Lv, for agreeing to this interview and your support to Asian Metal. Silicon carbide powder factories became active in purchasing green silicon carbide from Henrida, and what did your company do to make more and more companies to cooperate with your company?
- Henlida: Firstly, due to domestic economic downturn and the industry downturn unbearable climate, Our company also strives to develop in industrial restructuring, practicing skills steadily, which improves product quality, to high-quality products to win customer recognition and more market shares. Since October this year, silicon carbide industry also has a warming trend, and green silicon carbide powder demand from the main and downstream section manufacturers revived.
- Secondly, due to climate, transportation and other factors, some green silicon carbide factories decreased or halted production, and green silicon carbide supply became tight, so we increased green silicon carbide production, and we produce about 3,000t of green silicon carbide per month.
- Asian Metal: From September 2014 to August in 2015, Chinese green silicon carbide market was slow, and the market became revive this September. There were few green silicon carbide inventories from November, but most factories did not increase green silicon carbide prices. Besides, due to cold weather, idle capacity will not be started production before the Spring Festival. Could you tell me why producers were so idle capacity to improve green silicon carbide prices?
- Henrida: Firstly, electricity prices will be lowered in 2016, and powders factories expect green silicon carbide prices will fall, so we will not disregard their feelings. Secondly, green silicon carbide demand only partly improved. Although the supply of silicon carbide powder JIS1500 is tight, the market of powders JIS1200 remains slow, and the inventories are increasing. Green silicon carbide demand may not continue to improve in the coming months. If green silicon carbide prices rebound, many green silicon carbide factories in Gansu may resume production, and the prices will be low in the long term, so we are reluctant to increase green silicon carbide prices. About 200,000tpy green silicon carbide capacity in Gansu are out of production.
- Asian Metal: how do you think that photovoltaic industry will continue to revive or not, and what do you think about the fluctuations in the photovoltaic industry?
- Henrida: There are two factors affecting the development of photovoltaic industry, public policy and market factors. Subsidies for photovoltaic power generation are policy factors. Economic crisis, technological progress and oversupply are the market factors. The global photovoltaic industry market is developing rapidly, and the demand for solar photovoltaic silicon wafers is also increased, then the demand for green silicon carbide in solar photovoltaic industry should also be increased.
- Asian Metal: electric charge in Gansu may decrease by RMB0.08/KVH in 2016, and the electric charge in Qinghai will follow or not? Which will affect green silicon carbide prices trend or not?
- Henrida: We did not receive any news about the decline of electric charge, which will not affect green silicon carbide price trend in the coming days. Green silicon carbide price trend is only affected by relation between supply and demand.
- Asian Metal: What do you expect of China's green silicon carbide market in 2016?
- Henrida: I firmly believe that green silicon carbide market will be improved slightly in 2016.
- Asian Metal: Thank you very much for your interview.
- Henrida: Thank you!
