Challenges and opportunities coexist
----Interview with Fei Shuhuan, General Manager of Qingyuan Dingsheng Silicon Carbide Co., Ltd.
- Asian Metal: Could you please make a brief introduction to the basic condition of your company?
- With Jidong Baoxin Silicon Carbide Co., Ltd. as the base for raw materials, Qingyuan Dingsheng Silicon Carbide Co., Ltd. is a company of deep processing after the cooperation with Anshan Kena Abrasive Co., Ltd. in the production of water washing abrasive materials. Relying on reliable sources for raw materials and the advanced technology in producing silicon carbide grit, Dingsheng Silicon Carbide pushes the manufacturing of abrasive powder of silicon carbide products into new areas. The company owns 1 pendulum type pulverizer of Shanghai MB5R3216 which can produce 60t of silicon carbide 95-97%min or 80t of silicon carbide 70-90%min per day with an annual demand of 15,000t of silicon carbide. It produces black silicon carbide lumps, green silicon carbide lumps, directly manufactured abrasive materials and water washing silicon carbide abrasive powder with characters of one material, two colors, different sizes and various specifications and others.
- Asian Metal: The environmental inspection is very strict in China now and how do you cope with it?
- The environmental inspection is very strict at present and some companies which can’t meet environmental requirements have been required to halt production. However, as a company which has attached great importance to environmental protection since the establishment, our company only introduces equipment with dust covers and thus we can meet the standard of environmental protection, reaching an advanced position in this respect in China.
- Asian Metal: Would you like to share with us your opinion about the change of silicon carbide market in 2017?
- As an inevitable result of the oversupply in the market, the change of silicon carbide market is a matter which will happen sooner or later, especially under the background of strict environmental inspection in 2017 when producing environment, producing cost, supply-demand relationship and prices for black silicon carbide change substantially.
- Asian Metal: Affected by the sluggish market for green silicon carbide, some producers for green silicon carbide transform to produce black silicon carbide. What kind of influence will this phenomenon bring to black silicon carbide market in your opinion?
- Green silicon carbide producers halt production or transform to produce black silicon carbide on large scales mainly because of the change of demand for green silicon carbide from end users. Owing to the replacement of green silicon carbide macro powder with diamond wire in the application in the photovoltaic industry, the demand for green silicon carbide decreases dramatically and producers who accumulate large volumes of stocks are forced to transform to produce black silicon carbide. What’s more, it doesn’t need big adjustment for equipment which used to produce green silicon carbide to produce black silicon carbide. Due to low grade, the black silicon carbide produced by these kinds of producers is obviously competitive in prices and thus can occupy certain market shares. However, owing to limited output, prices for this kind of black silicon carbide can’t change mainstream prices for the material in the overall market.
- Asian Metal: What’s the influence of frequently changed silicon carbide prices on downstream market?
- The change of production cost is the main reason for prices of silicon carbide to change and thus prices for the material can keep relatively firm after being adjusted. Downstream enterprises shall make production plans according to sales for their own products and purchase silicon carbide based on the production plans in order to refill stocks in advance.
- Asian Metal: Will the frequently changed prices for silicon carbide in the domestic market bring some influences on the export market?
- The frequently changed prices for silicon carbide in the domestic market will bring some influences on Chinese export market in the short term as it’s difficult for overseas customers to accept the substantially increased prices. However, the influence will be limited in the long run as the changed prices in the domestic market are caused by changed production costs and demand from overseas customers increases steadily. Nevertheless, there must be a unified management mechanism in the silicon carbide market in the future in order to avoid vicious competition.
- Asian Metal: As the only comprehensive producer for silicon carbide in Liaoning, what will you do to keep competiveness?
- We will arrange production and operation based on the market condition and produce high quality silicon carbide. We believe that prices for the material will go up if there are fixed customers.
- Asian Metal: How do you think of the development of silicon carbide market from now to the end of 2017?
- On the premise of the current condition of environmental protection, producers shall reach a consensus on restricting production and control production capacities according to the actual consumption of downstream enterprise to activate the market. In addition, it also needs some administrative means to stimulate the healthy development of silicon carbide industry.
