Fanya gallium metal stocks not expected to enter market soon
----Interview with Jia Libing Chairman Zhuhai SEZ Fangyuan Inc.
Registered and founded in Zhuhai, Guangdong in 1996, Zhuhai SEZ Fangyuan Inc. (hereinafter referred to as "Zhuhai Fangyuan") is a comprehensive company integrating R&D, design, production and sales of gallium metal and chelating resin. By closely cooperating with several alumina producers, Zhuhai Fangyuan has set up six production bases with an annual production capacity of 130 tons of 4N gallium metal in Yuanping of Shanxi, Lushan of Henan, Dengfeng of Henan, Nanchuan of Chongqing, Zouping of Shandong and Jingxi of Guangxi, forming unique scale and resource advantages.
Asian Metal: Thank you for accepting our interview. Please give us a brief introduction of your company.
Mr. Jia: Zhuhai Fangyuan is a gallium metal producer and owns one resin plant and six gallium metal plants in Shanxi, Shandong, Henan, Guangxi and Chongqing with a total annual production capacity of 130 tons. We will continue focusing on production to ensure sufficient supply to downstream customers.
With an annual production capacity of 1,000 tons of resin, Shanxi New Zhuhai Fangyuan Resin Material Co., Ltd. under Zhuhai Fangyuan plans to produce 500t in 2019 due to strict environmental protection inspection now. Gallium metal plants of Zhuhai Fangyuan consume about 500t of resin per annum, so the resin output can basically meet our own gallium metal production need.
Asian Metal: Thanks for your introduction to Zhuhai Fangyuan. Could you tell us something about your own experiences?
Mr. Jia: After successfully developing gallium metal absorption resin by cooperating with other chemical experts and obtaining the production patent in 2000, I established the resin plant. From 2005 to 2011, I set up six gallium metal plants in succession.
Asian Metal: Presently, gallium metal producers are facing severe challenges as imported bauxite is used as the substitute of domestic bauxite, gallium content in the raw material drops and environmental protection inspection is strengthened. Do these exert any impacts on your company?
Mr. Jia: Shanxi Jiaye under Zhuhai Fangyuan is in production now and its alumina mother liquor is from CPI Shanxi Aluminum Industry Co., Ltd. under CPI International Mining Investment Co., Ltd.
Imported bauxite is used as the substitute of domestic bauxite currently, but the gallium metal output of Zhuhai Fangyuan hasn't been affected yet. However, with increasing consumption volume of imported bauxite, Zhuhai Fanyuan's output of gallium metal will be surely impacted.
Asian Metal: Many ways are adopted to extract gallium metal. Which one do you use? Does it have any cost advantage?
Mr. Jia: Zhuhai Fangyuan produces gallium metal through alkaline resin adsorption. The cost varies with different calculation standards, so it's hard to say whether it has an advantage or disadvantage.
Asian Metal:?We learnt that Zhuhai Fangyuan also produces resin in addition to gallium metal. Does this lower the production cost of gallium metal?
Mr. Jia: Resin is one of major raw materials of gallium metal and its price and performance have great impacts on cost.
If prices stand high, we can enjoy some price advantages with our own resin. Current resin market price is about RMB40,000/t (USD5,636/t), so we don't see any price advantage by using our own resin. Besides, the resin quality of other producers is excellent, so we also purchase the material from the market.
Asian Metal: What are the main application areas of gallium metal? Which one will be the new growth point in the coming three years?
Mr. Jia: Main application areas of gallium include communication devices, LED, magnets and so on. As the demand from 5G and intelligent equipment will increase in future, the consumption volume in the field of communication devices would see a sharp increase.
Asian Metal:?Do the gallium metal stocks of Fanya Metal Exchange make great impacts on the market? What will be the future solutions?
Mr. Jia: We haven't received any reliable information about future solutions to Fanya Metal Exchange's gallium metal stocks. No matter which way is taken, we predict that such stocks wouldn't make great impacts on the market as it wouldn't enter the market soon.
Asian Metal: What's your future plan for gallium metal business in the coming three years?
Mr. Jia: Zhuhai Fangyuan will maintain the current layout in the coming three years and arrange production flexibly based on market demand.
Asian Metal: Thank you again for accepting our interview. Wish your company a brighter future!
