China Fluorspar: Production, Export, and Demand

Transcription

1 Xu Yue, Shanghai Minmetals, China China Fluorspar: Production, Export, and Demand Insert your November 2011

2 Shanghai Minmetals About the Company State owned company founded in Started the fluorspar business from 1950s. The only export port of fluorspar in 1970s before reform open policy. Highest export volume over 300 thousand tons in 1980s; nowadays always the top three exporters of China. Set up three fluorspar flotation plants in Shanghai, Zhejiang and Anhui Provinces respectively in 1990s. Initiated the Mongolian fluorspar project which is now named Northwind in 2005.

3 Shanghai Minmetals More than 50 years' experiences in production and exportation of fluorspar. Market: long-term strategic cooperation with Chinese leading fluorspar producers, downstream consumers as well as the world's fluorochemical giants from Japan, Europe and the US. Chairman of China Chamber of Commerce of Metals, Minerals & Chemicals Imp/Exporters Fluorspar Branch and Vice chairman of China Fluorspar Professional Committee

4 I.China Fluorspar Production 1. China Fluorspar Output in 2010 China Fluorspar Output in 2010 is close to 5 million tons China Fluorspar Output in 2010 Application Amount (Thousand Tons) Percentage Hydrofluoric acid % Aluminum Fluoride % Steel Industry % Export % Other Industries % Total 4690

5 I.China Fluorspar Production China Fluorspar in 2010 Other Industry, 10, 0.21% Hydrofluoric acid, 1840, 39.23% Export, 540, 11.51% Steel Industry, 1570, 33.48% Aluminum Fluoride, 730, 15.57%

6 I. China Fluorspar Production 2. Characteristics Mines are small and Scattered According to the latest statistics, there are more than 1000 fluorspar producers all over the country. Those capacities below 50 thousand tons account for 80% above.

7 I. China Fluorspar Production 3. Long Term Trend and Major Influence Factors Long Term Trend: the output will be stable or a slight decrease in future. Major Influence Factors: The Reserves Vs annual Consumption of the resource The Governmental Policies (Major measures) The Downstream Industries Demand Other Reasons

8 I. China Fluorspar Production Major measures: 1) Upgrade the industry entry standards; Close small sized mines; Impose more tough regulations on safety and environmental protection production. So those mines who did not meet the regulations will be shutdown. 2) Mining Quota 2010: 11 million tons 2011: 10.5 million tons

9 I. China Fluorspar Production 4. Price and its Changes The General Trend The price keeps going up except for the year of Financial Crisis.

10 I. China Fluorspar Production 3000 The Price of Acid Grade Fluorspar in China

11 I. China Fluorspar Production Price Changes in The price changed dramatically from 2010 to 2011, and increased about 2.5 times in this period.

12 I. China Fluorspar Production 3000 Acid Fluorspar Price (RMB/ton, SiO2 1.2%)

13 Fluorspar HF, AF II. What is the Future of the Export Situation 1. The General Trend China Export of Fluorspar, Hydrofluoric Acid, Aluminum Fluoride (Thousand Tons) Fluorspar Hydrofluoric Acid Aluminum Fluoride

14 II. What is the Future of the Export Situation The actual fluorspar export of China did not change so much in the past ten years Products Export Fluorspar Equivalent Export Fluorspar Equivalent Fluorspar hydrofluoric Acid Aluminum Fluoride HCFC Total

15 II. What is the Future of the Export Situation 2. China Fluorspar Export in 2010 and 2011 Since Jan., 2010, the demands for Acid Grade Fluorspar, Hydrofluoric Acid and Aluminum Fluoride increased a lot in China. The export of fluorspar and its intermediate products increased a lot in amount. Year Acid Fluorspar Hydrofluoric Acid Aluminum Fluoride HCFC

16 II. What is the Future of the Export Situation The Export Price of the Acid Grade Fluorspar was going up continuously from 200 USD/ton early 2010 to 600 USD/ton (FOB) in the first half of USD/ton Middle of USD/ton Beginning,2010

17 II. What is the Future of the Export Situation 3. The future of the Export situation China will still be the major and un-replaceable fluorspar Supplier of the world in future because China fluorspar is of good quality, low-arsenic, low phosphorus, lowsulfur, and thus suitable for the downstream industries. The actual export of fluorspar was stable in last 10 years and is going up in recent 2 years. The Potential reserves is much larger than expected. As the price goes up, more money will enter into exploration of fluorspar resources and thus some new mines are found in recent years. The global price will keep going up in future.

18 III. Chinese downstream market The Major Downstream Industries of Fluorspar Fluorspar Acid Grade Fluorspar Metspar Hydrofluoric Acid Aluminum fluoride Other (welding rods, fluxes, etc.) Inventory adjustment Glass making Iron and Steel Casting Steel Making

19 Output, ton/annual III. Chinese downstream market China Hydrofluoric Acid and Aluminum Fluoride Output Hydrofluoric acid Aluminum Fluoride

20 III. Chinese downstream market 800 China Crude Steel Output (Million Ton)

21 III. Chinese downstream market 2. the Capacities of the Downstream Industries The down streams industries are over-capacity. Take HF as example, the capacity was about 1.4 M tons in 2010, while the output was only about 68% of the capacity. The same situation happened to ALF3, fluorocarbons industries.

22 III. Chinese downstream market The Real Output and the Capacity of Hydrofluoric Acid the Capacity the Real Output

23 IV. China Domestic Demand China domestic demand for fluorspar will increase continuously. The demand and its increase come from following factors: 1. the continuously increase of down steam industries 2. the transfer of low value-added products of down stream industries from developed countries to China (HF Output and capacity) 3. the applications of fluorspar in new area.

24 IV. China Domestic Demand The World Hydrofluoric Acid Capacity 2011 US 9% Mexico 6% Japan 2% Other 4% West Europe 12% China 67%

25 Shanghai Minmetals Company Address Shanghai Minmetals Contact Minmetals Building, 757 Guangfu Road, Shanghai, China Post code Tel Ext.1206 Fax Website

26 Thank you!