----Interview with Baowen Ding
Chairman
Anhui Tailong Zinc Industry Co.
Anhui Tailong Zinc Industry Co., Ltd (formerly Anhui Dingtai Metal Chemical Co., Ltd.) is located in Wujiang Industrial Park, He County, Ma'an Mountain City. Founded in April 2007, the company covers an area of 80 acres, with a registered (paid-in) capital of 10 million RMB and a fixed asset investment of 45 million RMB. The company currently employs 78 staff members. In 2023, the company achieved a total profit and tax of 6.68 million RMB. The company is the only large-scale zinc hypoxide production enterprise in Anhui province that focuses on comprehensive resource utilization, environmental protection, energy-saving, and efficiency.
Asian Metal: Mr. Ding, welcome to participate in this interview. To start, could you please briefly introduce your company’s structure and main business activities?
Mr. Ding: The company began construction in May 2007. Our first production line was completed in August 2008 and became operational in October 2008. We passed the environmental acceptance in August 2011 and received the certificate for comprehensive resource utilization from the Anhui Economic and Information Commission in December 2011. As the business grew, we added two more production lines, bringing our annual zinc hypoxide production capacity to 10,000 tons. Our main products include zinc hypoxide and baking-free brick production and sales. We utilize steel mill waste—specifically dust collection and zinc-containing solid waste—for reprocessing, effectively turning waste into valuable resources. Our production process uses a domestic advanced rotary kiln production line that complies with national environmental protection standards. The process involves sending dust collection ash (including dust, gas mud, and other zinc-containing waste) into a rotary kiln, where it is fully burned. The zinc hypoxide in the raw material is vaporized and recovered to produce qualified zinc hypoxide products. The wastewater is recycled in a closed-loop system, while the exhaust gas is treated with desulfurization and dust removal before being discharged. The only solid waste produced, rotary kiln slag, is water-quenched and has an iron content of over 60%. This slag is either sold to steel plants for iron absorption treatment or used to make baking-free bricks, ensuring there is no secondary pollution. This process fully supports resource utilization in line with national industrial policies.
Asian Metal: How do you anticipate the demand for zinc hypoxide will change in 2024 and 2025?
Mr. Ding: In 2024, domestic demand for zinc hypoxide is expected to grow. On the one hand, global market factors, such as geopolitical instability and rising demand for war readiness materials, will increase the demand for zinc. On the other hand, the rapid development of domestic industries like new energy vehicles will further boost zinc hypoxide demand. Additionally, the rising costs of zinc mining make the recovery and comprehensive utilization of zinc hypoxide more urgent. Looking ahead to 2025, the demand for zinc hypoxide will likely remain strong, with an expected growth rate of nearly 10%.
Asian Metal: How do you foresee zinc ingot prices and the zinc hypoxide coefficient evolving in the first quarter of 2025?
Mr. Ding: Currently, the price of zinc hypoxide is balanced with supply and demand, but as demand increases, prices may fluctuate. We expect zinc ingot prices to rise to approximately RMB 27,000-28,000/t (USD 3,704-3,841/t) in the first quarter of 2025. However, there are uncertainties that could affect this forecast. As for the zinc hypoxide coefficient, it is anticipated to increase by 1%-3% in the first quarter of 2025.
Asian Metal: What is the current profitability of zinc hypoxide production? What are your company's advantages in production technology?
Mr. Ding: Right now, zinc hypoxide producers are operating in an environment of low profits. On one hand, the downturn in industries like steel production has reduced the supply of tailings and increased raw material costs. On the other hand, costs for labor, electricity, and natural gas have risen. Regarding our production technology, our company utilizes a unique raw material synthesis formula and high-temperature controlled calcination technology. This allows us to maximize zinc hypoxide extraction from raw materials. Our quenching rate of raw material zinc reaches 95-98%, while most other enterprises achieve only 88-92%.
Asian Metal: What raw materials do you use to produce zinc hypoxide, and what is the current supply situation?
Mr. Ding: Our main raw materials come from byproducts of the steel and iron-making processes, such as blast furnace dust, gas ash, gas mud, and converter sludge. Due to the downturn in the steel industry, the supply of these raw materials has become tight.
Asian Metal: What is the current price of raw materials for zinc hypoxide, and what are your suggestions for addressing the tight supply of these materials?
Mr. Ding: Raw material prices have risen significantly, with some areas seeing increases of more than 50%. The tight supply of raw materials is putting substantial cost pressure on zinc hypoxide producers, with some companies struggling to survive. We suggest establishing industry associations, setting industry-guided prices, and working together to address these challenges.
Asian Metal: What opportunities and challenges do Chinese zinc hypoxide producers face, and how do you plan to respond?
Mr. Ding: While domestic zinc hypoxide production has effectively met domestic market demand, enterprises are currently facing both opportunities and challenges. The opportunity lies in market adjustments, with demand remaining at a certain level. The challenge, however, is managing rising costs and maintaining profitability. Our company plans to increase technological innovation, continually reduce the standard of raw materials, optimize production processes, and strengthen cost control to produce the highest-quality products at the lowest possible cost.
Asian Metal: Thank you for your insightful responses, Mr. Ding. We wish your company continued success.