Chinese silicon metal price expected to increase further in a short term
----Interview with Elaine Yang, General Manager of Hunan Sunrising International Co., Ltd.
Hunan Sunrising International Co., Ltd. is an industrial and trading company which was reorganized from a large state-owned trading enterprise, named China Hunan Arts and Crafts Import/Export Corporation. We have accumulated rich experiences, best resources, and inherited the excellent tradition from the state-owned company. The modern and professional enterprise has formed a perfect service system integrated by product design, manufacture and domestic & foreign trade. Our company takes markets as guidance and factories as dependence. We have set several independent departments under our group, one for non-ferrous metals（silicon metal、mg ingot、mn metal), one for chemical products, one for canned foods and commodities, and one for arts & crafts etc. All of our products comply with international quality standards and have been greatly appreciated by a variety of markets throughout the world, such as European, North and South America, Mid-east, Southeast Asia, Oceania, and African countries & regions. As the leading company of this field in China, Hunan Sunrising International always insists on the principles of high quality products, high quality service and win-win relationships value. We are looking forward to enlarging business scope with our current customers and establishing long-term mutual beneficial relationships with more new clients worldwide in the near future.
Asian Metal: Ms Yang, thank you for accepting the interview of Asian Metal. Could you please give us a brief introduction about the main business of your company?
Ms Yang: Our company mainly focuses on silicon metal, manganese and magnesium. Silicon metal is our key product and our main specifications are 2-2-0-2, 2-5-0-2, 3-3-0-3, 3-1-0-2, 3-2-0-5, 4-1-1, 4-2-1, 4-4-1 and 5-5-3. Based on our own production base, our company has established good relationship with other smelters in Yunnan, Guizhou, Sichuan, Guangxi and Hunan etc. All of our products comply with international quality standards and have been greatly appreciated by a variety of markets throughout the world, such as European, North and South America, Mid-east, Southeast Asia, Oceania, and African countries & regions.
“Sunrising” has been one of the leading enterprises in silicon metal industry home and abroad in 2014. Our sales volume of silicon metal reached a new record in 2015 and we were awarded as the “3A Credit Rating Enterprise”. We were awarded as the “Faithful & Excellent Trading Company” during the selection of excellent silicon metal enterprises during “the 12th Five-Year Plan”.
Asian Metal: How is your current trading volume of silicon metal?
Ms Yang: We reached an annual trading volume of 40,000t of silicon metal, 40% for domestic sales and 60% for export.
Asian Metal: Chinese silicon metal prices increased gradually in October by around RMB100/t per week. Further into November, silicon metal smelters have raised quotations sharply almost every day. What’re the reasons for the fast price rise? What was the reaction of buyers?
Ms Yang: I personally think that silicon metal price has kept at a low level in the past months and the pressure of producers had to be released. Actually, the price had momentum to go up, but it did not soar at the time as the market was under fierce competition in pricing. Recently, the freight cost rise under new transportation policy and raw materials coal, petroleum and electrode price rise together pushed up silicon metal price. Buyers were accepting the prices gradually as the supply on the spot market was tight.
Asian Metal: Many silicon metal smelters withdrew from selling and did not make offer since the beginning of November. Is it difficult to purchase silicon metal on the spot market now?
Ms Yang: Yes it is hard to purchase silicon metal currently. For users, they are inclined to add purchasing volume when the price moves up and postpone purchase when the price goes down. Some smelters withdraw from selling materials. We are optimistic about the future market as dry season is approaching.
Asian Metal: Yunnan and Sichuan will enter the dry season gradually in the end of November. Now silicon metal smelters hold firm quotations. How do you expect the future market in the dry season?
Ms Yang: I think the market is not risky currently and there is still space for the price to increase. The power price will increase and supply will be tight in dry season, and silicon metal output will decrease sharply.
Asian Metal: How was your company’s sales situation in domestic and export markets recently?
Ms Yang: The quotations of all grades silicon metal are moving up now, while the market for several grades silicon metal was relatively slow. Many buyers have sensitivity and foresight on the market and we also suggested regular customers to build some stocks in August and September. At present, our cooperators and us are not under heavy pressure. We are delivering materials in domestic and export markets smoothly and our sales are not influenced by the big fluctuation in the market.
Asian Metal: What are the advantages for silicon metal production in South and North China?
Ms Yang: Smelters in North China use thermal power and those in South China use hydroelectricity. Smelters in North China could keep production all year long with stable output and they have advantages in raw materials and power price. However, the transportation in North China is inconvenient and shipment time is log. Due to seasonal reasons, the production for smelters in South China is unstable, but the smelters in South China have mature technology and could produce high-grade silicon metal. Moreover, the transportation is convenient. Each one has their good points.
Asian Metal: Chinese silicon metal market is under fierce competition this year, especially in the export market. What’re your company’s solutions?
Ms Yang: Under the principle of “Credit and Quality First”, we try to provide best service to our customers and lower their cost, getting a win-win result. We sincerely welcome customers home and abroad to visit our company for business negotiations and we will provide excellent service.
Asian Metal: Thankks for your sharing and your support for Asian Metal. With your company a better future.
