---- Interview with Huang Shafei
General Manager
Hunan Hongcheng New Material Technology Co., Ltd.

Hunan Hongcheng New Material Technology Co., Ltd. was established in 2021 and is located in Zhuzhou City, Hunan Province. It is an enterprise mainly engaged in non-ferrous metal smelting and rolling processing. Its main products are high-purity low-oxygen tantalum and niobium metal powder. It is a leading enterprise in the field of tantalum and niobium metal powder, and is also one of the national high-tech enterprises and one of the new material enterprises in Hunan Province.

Asian Metal Net: Hello, Mr. Huang. Welcome to the interview with Asian Metal Net. Please briefly introduce the recent situation of the company.

Huang Zong: Hello, thank you very much for the Asian Metal Net. At present, our company's production is in good condition, normal operation and stable output. At the same time, as an innovative enterprise, we are further improving product quality and reducing production costs through technological innovation and process optimization. Our company has an annual production capacity of 50 tons of high-purity low-oxygen tantalum powder, 70 tons of low-oxygen niobium powder, and a total production capacity of 120 tons of tantalum and niobium metal powder.

Asian Metal Network: What is the supply of high-purity low-oxygen tantalum and niobium metal powder in China in 2023, and is it expected to increase in 2024?

Huang Zong: In 2023, the supply of high-purity low-oxygen tantalum and niobium metal powder in China was 100 tons, showing an overall growth trend, mainly due to the strong demand in the downstream industry. Affected by various factors such as changes in market demand, raw material prices, and capacity constraints, we expect supply to continue to grow by no less than 10% in 2024.

Asian Metal Network: What is the demand for high-purity low-oxygen tantalum and niobium metal powder in China in 2023 and what is the expected situation in 2024?

Mr. Huang: In 2023, the demand for high-purity low-oxygen tantalum and niobium metal powders also showed an increasing trend, with a total demand of 100 tons, including tantalum-niobium alloy powders and related high-entropy alloy powders, especially in aerospace, electronic information and The demand for applications in the fields of new energy continues to be strong. Demand is expected to keep growing in 2024, and the total is estimated to grow at a rate of no less than 10%. In terms of the proportion of applications in downstream industries, we have noticed that the proportion of applications in the fields of superconducting materials, aerospace and new energy is gradually increasing, while the field of electronic information has remained stable.

Asian Metal Network: In the first half of 2024, the price of tantalum and niobium raw materials will rise. Will it have a huge impact on the downstream metal powder industry?

Huang Zong: The rising price of tantalum and niobium raw materials has indeed had a certain impact on the downstream industry, but the specific degree of impact varies from enterprise to enterprise. Our company reduces production costs by strengthening raw material procurement management, optimizing production processes and improving product quality, thereby reducing the impact of raw material price fluctuations.

Asian Metal Network: Due to the recent tight supply in the niobium oxide market and the continued high price, do you think the current high niobium price will affect the demand of end users?

Mr. Huang: At present, the supply of niobium oxide market is tight, and the mainstream price is stable at 380-390 yuan/kg. It will indeed have a certain impact on end users, but the degree of impact varies with the user industry and specific needs. Some price-sensitive users may reduce their purchases or look for alternatives, while some just-in-need users may continue to purchase. Our company will pay close attention to market dynamics and changes in customer demand, flexible adjustment of sales strategy and product pricing.

Asian Metal Network: Due to the lag in the production cycle of metal powder, how to balance the cost of raw materials and the sales price?

Mr. Huang: The lag in the production cycle of metal powder does bring us challenges, but we have adopted a series of measures to balance the cost of raw materials and sales prices: one is to strengthen market research and forecasting, and to formulate procurement and sales plans in advance; The second is to establish long-term and stable cooperative relations with suppliers and customers to ensure the stability of raw material supply and sales channels; the third is to reduce production costs through technological innovation and process optimization, improve product competitiveness.

Asian Metal Net: What do you think of the future market of tantalum and niobium metal powder in the second half of the year?

Mr. Huang: Judging from the current market situation, the tantalum and niobium metal powder market is expected to maintain steady growth in the second half of the year. With the continuous development of the downstream industry and the increase in demand, we expect the supply and demand of tantalum and niobium metal powder to continue to grow. At the same time, we will pay close attention to market dynamics and policy changes, and flexibly adjust production and sales strategies.

Asian Metal Network: What is the company's future development plan or the advantageous products it will focus on in the later period?

Mr. Huang: Our company will focus on providing high-purity and low-oxygen products and services for the market in the future, and supply customers with high-purity refractory rare metal powders with various specifications and sizes and related high-entropy alloy powders and other high-end products to meet the needs of high-high quality metal powders in the fields of aerospace, electronic information, new energy, superconducting materials, etc, to achieve our goal of "empowering the strong base for the localization of 'Chinese core', 'Chinese screen' and 'Chinese material. At the same time, we will also actively explore and develop new metal powder products to meet the diverse needs of the market.

Asian Metal Net: Thank Mr. Huang for accepting this interview and wish your company a prosperous career.

Huang Zong: Thank you.