----Interview with Ansheng Cao
General Manager
Jiangsu Qisheng Metal Technology Co., Ltd.
Jiangsu Qisheng Metal Technology Co., Ltd. was established on May 19, 2021, with a registered capital of RMB 27.1 million. The company is headquartered in the High-tech Development Zone of Dainan Town, Taizhou City, Jiangsu Province. It is a high-tech enterprise specializing in the research, development, and production of new energy materials.
Asian Metal: First of all, we would like to extend a warm welcome to Mr. Cao for joining us in this interview. Could you please give us a brief introduction of your company?
Mr. Cao: Our company’s product portfolio mainly covers nickel cathode, cobalt metal, copper cathode, metallic chromium, nickel sulfate, nickel carbonate, lithium carbonate, and various ferroalloy products. We are also committed to the innovation and application of new energy technologies. The company owns independent intellectual property rights and holds four administrative licenses, with an output value exceeding RMB 600 million in 2024. As a technology leader among small and micro enterprises, Qisheng Metal adheres to the philosophy of “technology-driven, green production,” continuously optimizing our production processes. Our products are widely applied in new energy and high-end manufacturing sectors. The company has a professional team and has obtained ISO quality management system certification, providing partners with high-quality and efficient metal and alloy solutions.
Asian Metal: What are the main production processes currently used in domestic nickel cathode production?
Mr. Cao: At present, there are two major technological routes for nickel cathode production in China. The first is pyrometallurgy, which involves roasting to produce nickel matte, followed by electrolysis to obtain electrolytic nickel. Representative enterprises for this route include Jinchuan and Jilin Jien—both long-established state-owned enterprises. The second is hydrometallurgy, where laterite nickel ore is processed through high-pressure acid leaching (HPAL). Lead plates serve as insoluble anodes, and nickel gradually deposits on the cathode from the nickel sulfate solution. Representative enterprises using this process include Huayou and GEM. Currently, the total domestic capacity for nickel cathode is about 450,000t per year, of which around 150,000t are produced via hydrometallurgical processes. Our company mainly uses domestically produced nickel hydroxide, crude nickel sulfate, and nickel carbonate as raw materials, adopting the hydrometallurgical process. Our advantage lies in lower production costs—domestic raw materials offer a clear price advantage over imported nickel hydroxide. However, the disadvantages are that domestic raw materials are limited in supply and dispersed among many small suppliers, making large-scale production difficult. Currently, the cost of using domestic raw materials is RMB6,000-7,000/t lower than that of imported nickel hydroxide.
Asian Metal: In recent years, nickel cathode produced by hydrometallurgy has gradually gained recognition in the market. Before that, nickel cathode produced by pyrometallurgy was the dominant product in circulation. What are the key differences between these two products?
Mr. Cao: Although both the nickel cathode produced via hydrometallurgy and via pyrometallurgy have a nominal nickel content of 99.96% minimum, in practice, the content of nickel cathode produced via pyrometallurgy can reach 99.97% or even higher, whereas that via hydrometallurgy achieves only 99.92–99.93% in real production. Moreover, nickel cathode produced via pyrometallurgy has higher density and lower gas content than nickel cathode produced via hydrometallurgy, resulting in superior quality. Nickel cathode produced via pyrometallurgy is widely used in electroplating, high-temperature alloy smelting, and high-end alloy manufacturing industries such as aerospace and defense rely heavily on it. Nickel cathode produced via hydrometallurgy, by contrast, is mainly used in ordinary steelmaking, where the resulting materials have inferior physical performance.
Asian Metal: Nickel prices continued to decline in the second quarter of this year. What do you think are the main reasons for this?
Mr. Cao: The continuous decline in nickel cathode prices is mainly due to weakening demand and increasing supply. In the second quarter, China added approximately 25,000t of new capacity, while downstream demand from the new energy vehicle and stainless steel sectors dropped by more than 20% in terms of orders, creating a clear imbalance between supply and demand.
Asian Metal: The demand for nickel cathode remained weak in the third quarter. Do you expect to see a significant rebound in the fourth quarter?
Mr. Cao: Judging from the new energy vehicle and stainless steel industries, a strong recovery in the fourth quarter is unlikely. Demand for nickel cathode showed no substantial improvement in the third quarter. However, from the perspective of nickel hydroxide supply and cost factors, prices are still supported on the cost side. In the third quarter, nickel cathode prices fluctuated within the range of RMB 120,000–125,000/t. Considering the current stainless steel market demand and overall consumer sentiment, nickel cathode demand in the fourth quarter is expected to improve only slightly from the previous quarter. Supported by production costs, prices are unlikely to fall below RMB120,000/t.
Asian Metal: Under cost pressures, some consumers have turned to using nickel scrap or nickel cathode produced via hydrometallurgy, which have higher impurity contents but lower prices. Has this had a significant impact on the pyrometallurgical nickel cathode market?
Mr. Cao: Indeed, such substitution has had a noticeable impact on pyrometallurgical nickel cathode consumption. In an already weak demand environment, this behavior has further amplified the decline in consumption. Among our customers, this group accounts for roughly 20% to 30%.
Asian Metal: What are your company’s development goals and future plans? Are there any new projects currently being considered?
Mr. Cao: Given the current oversupply of nickel cathode, we do not plan to expand our production capacity for the time being. However, we are considering diversifying into other nickel-based products. For example, if nickel sulfate demand rebounds in the second half of the year and profitability improves, we may allocate part of our capacity to nickel sulfate production. Additionally, we are planning a nickel sulfate ferrite project, which is still in the early planning stage without substantive progress yet.
Asian Metal: Thank you, Mr. Cao, for taking the time to share your insights with us. We wish Jiangsu Qisheng Metal Technology Co., Ltd. continued success and prosperity in the future.