Kaolin is an important raw material for the production of porcelain, and Chinese porcelain is well-known in the world, with annual output and export volume ranking first in the world, daily ceramics accounting for 70% of global output, decorative art porcelain accounting for 65%, sanitary ceramics accounting for 50%, architectural ceramics accounting for 64%. In this context, overseas kaolin producers want to cooperate with Chinese customers and win large orders, and just now an Australian kaolin producer was lucky to get the "admission ticket".
Successfully holding a thigh? The annual transaction volume will reach 250 million, and the Australian kaolin producer signs a big order in China!
According to Australian media reports on June 11, Australian-listed kaolin producer AndromedaMetals Limited (ADN) announced that it has signed a legally binding five-year offtake agreement with a company from Jiangsu, China, which provides 70,000 tons of high-purity kaolin to the Chinese customer every year, although the contract price is not disclosed, but ADN revealed that the price of kaolin exported to China will be higher than 700 Australian dollars per ton.
According to this estimate, ADN's annual kaolin trade with China will be at least 50 million Australian dollars (about 250 million yuan), and at least 250 million Australian dollars (about 1.25 billion yuan) in five years. James Marsh, managing director of ADN, said the big order from China was reached after months of intense negotiations and was not easy.
According to the data, ADN's Poochera Elohi-Kaolin Project in Western South Australia has a world-class Elohi-Kaolin deposit with excellent characteristics of long mine life and short production cycle. Australian media pointed out that the first two years of the project is expected to produce 116,000 tons of kaolin per year, while the output has doubled to 220,000 tons from the third year. This also created 350 jobs in the surrounding area of the project, including 75 on-site jobs.
According to data from research institute GrandViewResearch, by 2025, the global ceramics market will reach $407.7 billion (about 2,605 billion yuan), with an average annual compound growth rate of 8.6%. This also means that as a major producer of ceramics, China's total demand for kaolin will continue to grow in the future, and the Australian kaolin producers who "hold their thighs" can naturally get a share.
China-Australia trade volume reached 562 billion! Singapore exhorted Australia to learn to live with China
In fact, in addition to Australian kaolin producers recently, Australian zirconium miners have also received large orders from China. On 8 June, Sheffield SourcesLtd announced the signing of three supplementary agreements with major Chinese customers to supply 170,000 tonnes of zirconium concentrate from the Thunderbird project in Western Australia to Chinese zirconium concentrate processors annually for a period of five years.
In this regard, the voice of the industry pointed out that Chinese enterprises provide funds, Australian enterprises provide raw materials, and the cooperation between Chinese and Australian enterprises is essentially mutually beneficial and takes what they need.
However, contrary to the attitude of friendly cooperation held by Australian miners, since this period of time, Australian officials have betrayed their faith and undermined cooperation, while at the same time innocently dressing up and throwing pots and pans. In view of Australia's actions, the Chinese side has suspended all activities under the China-Australia Strategic Economic Dialogue "indefinitely".
However, after the suspension of the China-Australia Strategic Economic Dialogue, in the context of the crazy soaring iron ore prices, in the first five months of this year, the trade volume between China and Australia still reached 87.88 billion US dollars (about 562 billion yuan), an increase of 23% year-on-year. On this basis, the Australian economy has also been able to return to the blood, and Australia's GDP in the first quarter increased by 1.8% compared with the fourth quarter of 2020.
Unfortunately, the latest report of CapitalEconomics pointed out that iron ore prices may fall back to about $140 per ton by the end of 2021 and fall to $120 per ton by the end of 2022. In other words, without the support of iron ore, Australia's economic recovery has a bumpy road.
According to lianhe Zaobao, on June 10, local time, Australian helmsman Morrison went to Singapore and held a 40-minute one-on-one meeting with Lee Hsien Loong, during which Lee Hsien Loong told Morrison in person that he must learn from China and coexist in a friendly manner to avoid a very bad outcome.
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