Ningxia Commercial Foreign Trade Co., Ltd., attached to Ningxia Commercial Group Co., Ltd. CNSIC, with registered capital 51 million Yuan, is specialized in import and export trade with annual export turnover over 60 million US dollars, which is the key leading imp-exp company of Ningxia. In the year of 2004, the company has passed ISO9001:2000 certification. In 2006, the Brand “Golden Stone” Ferro Silicon has registered in Japan. The annual export volume of Ferro Silicon accounts for 20% of Ningxia’s and 5% of national annual export volume. The Ferro Silicon are mainly exported to Japan and Korea and enjoys big share in Japan market.

Zhang Xifeng, General Manager of Ningxia Commercial Group Co., Ltd, recently gave an exclusive interview to asianmetal.com.

Asian Metal: Good Morning, Mr Zhang. Thank you very much for your doing this interview. What’s your opinion about the economic trend in the coming months?

Mr Zhang: The Chinese macroeconomic situation has become better since April compared with the economic index in the first quarter. Moreover, domestic demand has greatly increased. The Chinese central government invested 4,000 billion for some projects, and it really stimulated domestic demand. For instance, the sale volume of automobile increases obviously, and total retailing of social consuming goods has improved a little bit.

Asian Metal: That means with the automobile and construction industries recovering, the economic situation will become better in the third and fourth quarter, compared with that of the first and second quarter.

Mr Zhang: Of course, it is still worse than that of the first half of 2008. But compared with that of the second half of 2008 and the first and second quarter of 2009, the Chinese economic situation will improve a lot in the third and fourth quarter of 2009. This is including the improvement in investment and the operating rates of projects. In any event, the economy still moves unsteadily now, for example, the decrease of export and the over-capacity of production.

Asian Metal: As for ferrosilicon companies, how is the demand and supply now? Are there many materials in their stocks? I think having gone through the great decrease of price, ferrosilicon companies are very cautious to resume their production, and there are few materials in their stocks now.

Mr Zhang: I agree with you. There are few inventories now. Even if there are some stocks, it belongs to some foreign consumers. Chinese suppliers have few materials now. Chinese crude steel output has increased these months, so it will affect the production of some ferrosilicon smelters. As for export, the total volume of Chinese import and export has decreased by 22.8% in April, and it was 19.17% in March. The decrease amplitude is still expanding. Meanwhile, container throughput of Tianjin port decreased by 12% in April and by 10% in March. The statistics shows that the export market is really at the bottom. Actually the export volume of some categories has rebounded a little bit though the price has not increased yet. For instance, Chinese ferrosilicon export to Japan has increased in April, but the price remains at a low level.