Tin ore shortage to further boom global tin recycling in 2020
----Interview with Zhao Huadi
General Manager
Zhejiang Suichang Huijin Nonferrous Metals Co., Ltd.
General Manager
Zhejiang Suichang Huijin Nonferrous Metals Co., Ltd.
Located in Maotian Industrial Zone, Suichang, Zhejiang and founded in May 2011, Zhejiang Suichang Huijin Nonferrous Metal Co., Ltd. (hereinafter referred to as Huijin Company) is a resource comprehensive utilization enterprise that recycles tin, copper, gold, silver, platinum, palladium and other nonferrous, rare and precious metals from nonferrous metal scrap. Covering an area of around 57,333 square meters, the company is a Lishui-based owner of hazardous solid waste business license and an environmental protection circular economy project that is encouraged by the state.
Asian Metal: Mr. Zhao, please give us a brief introduction of your company's development history and main business.
Mr. Zhao: I started working in this industry in 1996. Formerly known as Zhejiang Huiyuan Copper Industry Co., Ltd., Huijin Company covers an area of around 57,333 square meters and is engaged in the business of copper, gold, silver, platinum, palladium and so on. We began to develop the process of recycling valuable metals from anode slime in 2008 and settled down in Suichang as a key project in 2011. Founded in May 2011, Zhejiang Suichang Huijin Nonferrous Metal Co., Ltd. started construction of the project with an annual production capacity of 30,000 tons of copper cathode and 20,000 tons of hydrometallurgical copper in June 2011 and put the project into pilot production at the end of 2012. Then, the company decided to halt operation of its copper cathode production line as treatment charges for copper in both domestic market and overseas market declined sharply and production cost was higher than selling prices and focused on the anode slime resource comprehensive recycling project that mainly extracted metals. It conducted technological transformation on the project in 2013 for large-scale production of tin anode slime and silver slag and got the approval from provincial environmental protection department for hazardous waste business license with a scale of 17,000 tons per annum in November 2016. Huijin Company has been working in resource comprehensive utilization industry for over two decades and expects to expand operation in this field.
Asian Metal: How about your operation in 2019?
Mr. Zhao: Our operation met expectation in 2019. At the end of year, outputs of metals were basically in line with the production guidance set in early 2019 and achieved targets of the year. In 2019, our company totally produced more than 2,000 tons of tin ingot, more than 700 tons of copper cathode, about 1,500 tons of lead-antimony alloy, 400 tons of nickel sulfate and some associated precious metals and recorded an operating income of approximately RMB480 million (USD68.84 million) and a taxable income of RMB12 million (USD1.72 million).
Asian Metal: Tin smelting industry witnessed fierce competition in 2019. What are your advantages?
Mr. Zhao:We give better play to value of all metal elements after researching separation and extraction of metals for years and take a lead in direct recovery rate and recovery rate of metals in the industry. Always adhering to the ideas of science, environmental protection, innovation and development and developing in a high quality and green way by giving priority to environment, we strive for harmony and unity of enterprise, society and nature and try to realize joint development. We research and work in a down-to-earth manner and fight in the forefront of tin smelting and resource comprehensive utilization with the attitude and will in early days.
Asian Metal: What are your views about tin market in 2020?
Mr. Zhao: In 2019, tin market experienced unusual trend in recent years. Mine accidents in China resulted in decreasing supply of tin ore, relocation of tin solder plants led to lower supply of tin scrap and import volume from Myanmar dropped by about 20%. Tin ingot consumers lost confidence with the escalation of the China-U.S. trade friction and changeable China-U.S. relationship and reduced orders with a wait-and-see attitude. Acting as a connecting link, smelters were inactive in producing in 2019 due to high cost, lower treatment charges and pessimistic attitude of downstream consumers. As tin ore from Middle Asia and Myanmar will be imported to China in 2020, the market would see increasing supply. Even so, the increase cannot completely satisfy demand from Chinese smelters. The gap will absolutely trigger a fever for utilization of renewable metal resources again. As a pioneer and practitioner of the industry, we expect tin industry to go back to the good days before 2018 after the industry upgrading and integration in 2020.
