Young’s Refectory Materials Inc.
No.1, Men’s Avenue, Zhongshan District
Dalian, Liaoning Province
Date: September 29,2001
Eric H. Williams
North American Minerals
905 48th Avenue
New York, N.Y. 10159
Re: Marketing the Refractory Materials
Dear Eric H. Williams,
It’s very nice to get your name and address from Young Fan, the President and CEO of Young’s Refractory Materials Inc.. I’m very happy to get start with you on the Chinese refractory raw materials.
You may know well that the 1990’s represents the second decade of significant movement of Chinese refractory raw materials into world markets. Deliveries to North America commenced with an initial bauxite shiment in 1979, followed a few years later by magnesite and graphite. Today, many segments of the American refractory industry depend on Chinese raw materials with no specific physical of chemical characteristics that identify the Chinese materials as being particularly different from other principal world sources, pricing has been the primary inducement. Although there are no reliable statistics on the bauxite, magnesite from China to the US is 500,000 MT and 300,000 MT in 2000 respectively. In 2001, the estimation would be 10 percent higher than that of last year as more and more endusers will switch to the Chinese materials.
Coincident with supply difficulties from Guyana in the early 1990’s, China came on the world scene with a refractory grade bauxite, which was received with not only skepticism and apprehension, but also considerable rejection. However the Americans with the spirit of pioneer brought the first shipment, by vessel “July Flower”, from me right after the Independence Day in 1990. The US usage gradually increased until China eventually surpassed Guyana in 1991 with 180,000 MT for the bauxite and 100,000 MT for the bauxite and 1,000,000 MT for the magnesite each year.
The short recall for the materials is not to teach you; rather it’s to make both of you and me to know that the Chinese are coming in the refractory world market. In my company I’m in charge of Bauxite and Magnesite. I know you’re acting for Harbinson
Walker, a leading refractory brick maker in California. Mr. Young told me that you purchase 200,000 MT for the bauxite and 150,000 MT for the magnesite each year from Guyana, Greece. Many people in the refractory world say that Guyana and Greece belong to yesterday and China belongs to the future. We have 50 percent of the China’s export share in Dalian, China. Eric, I’m confident that we could make things better if you and me jointly work together. We could make today splendid.
Looking forward to hearing from you soon.
Ma JunMarketing Manager
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