Vast Potential For Chinese Needle Coke Market -Dialogue With Beijing Sojitz JECT

　　Beijing Officeof Sojitz JECT Corporation(hereafter referred to as “Beijing Sojitz JECT”)comes to be known as sales agent of needle coke from Japanese NJC corporation.It has set up Hi Como Needle Coke Technology Co. Ltd. in Pizhou, Jiangsu,planning to realize nationalization of needle coke production. Iccsino.comwebsite familiar with carbon industry interviewed Gong Yaoxin about the Hi Comoinformation, as well as views and schedules on needle coke market from BeijingSojitz JECT.

　　Beijing SojitzJECT is now responsible for coal-based needle coke produced by Japanese NJCcorporation. According to ICCSINO, the output of coal-based needle coke of NJCis 120,000 tons each year, while that of Beijing Sojitz JECT in the Chinesemarket has reached about 60,000 tons. Beijing Sojitz JECT has alwayscooperation with Fangda Carbon New Material Technology Co., Ltd, Jilin CarbonCo., Ltd, Kaifeng Carbon Co., Ltd, and Datong Carbon Co., Ltd. In 2004, per tonof needle coke represented was over $1,000. However, as downstream carbonplants still have inventories or remnant contracts of 2014, its price remainsunsure up to now. But Mrt Gong claims that the needle coke price won’t changesharply and can keep stable.

　　Hi Como NeedleCoke (Jiangsu) project is joint veture one between NJC corporation and SojitzJECT. Beijing Sojitz JECT invested more than 700 million into Hi Como plant in2013 and adopted Japanese technology in the production process. It is projectedthat the company will put into production in May 2015 once approved by releventdocuments inssued, for all equipment inside the plant has been established. HiComo Needle Coke (Jiangsu) Technology Co. Ltd. specializes in coal-based needlecoke and part of its by-products like asphalt and coke powder, etc. It isexpected that annual output of coal-based needle coke will reach 60,000 tons aftergoing into production. Needle coke of the plant has its priority: It hasobvious advantages in logistics speed and cost control over imported products;compared with domestic products, it is better in performance and more stable inquality.

　　http://en.iccsino.com/skin/eng/image/lazy.gifNo single goodreason seems to explain why the location is in Pizhou of Jiangsu: the localauthorities support such a project very much; the coking plant at the chemicalindustry park can supply sufficient raw materials for the plant; it isconvenient for the plant to deliver goods since it is close to the domestic keyelectric machine enterprises; for the clients abroad, it is easy to import andship products when the location is nearby Lianyungang port.

　　As ICCSINOreported, because the demands of Chinese needle coke exceeded its supply in theearly period of the Hi Como project in 2013, Beijing Sojitz JECT decided torealize the natinalization of needle coke. A freeze hit Chinese iron and steelindustry in 2015 when enterprises chose to use more molton iron to reduce theproduction cost, so that technology R&D on graphite electrode fell intorecession, and meanwhile demands of needle coke began to decrease in theChinese market. Gong replies over this matter that the company pays moreattention to its long-term development and he believed the decline for themoment would be a  temporary condition. With the development of Chineseeconomy, the amount of waste iron and steel in real estate and automobileindustry will increase year by year, and national constant attention toenvironmental protection can cause steelmaking in blast furnace to languish. Bythen electric furnace steel making would become an irreversible trend in ironand steel industry, so demands of needle coke can also rise. Moreover,according to Opinion Letter on Iron&Steel DevelopmentPolicy released by Ministry of Industry and Information Technology the otherday, it predicts that the demands of needle coke in Chinese market will doubleand the ratio of electric furnace steel making may increase from 10% to 30%.Therefore, the decline in the short term cannot indicate the future trend ofneedle coke industry, and the company predicts that there is still greatdevelopment space for Chinese needle coke market.

　　Based on thevast potential of Chinese needle coke market, Beijing Sojitz JECT anticipatesthat after Hi Como puts into production, the company can establish a closercooperative relation with domestic clients and downstream businesses, jointlymaking Chinese needle coke and ectrode industry larger and stronger.