30+ YEARS OF EXPERIENCE IN CARBON INDUSTRY

Client Background:

The client is a ferroalloy manufacturer based in Iran’s Free Trade Zone, established in 2015. Their primary products are ferrosilicon and silicomanganese. With three 8,000 KVA furnaces, their annual demand for electrode paste exceeds 1,500 metric tons (MT). The client is highly price-sensitive, traditionally sourcing long-term supplies from India with only sporadic purchases from China.

Cooperation History:

Initial contact was made in 2020. However, a potential 500 MT order failed to close due to the client’s aggressive price negotiations. Subsequent follow-ups revealed that the client consistently benchmarks against Indian prices, seeking high-quality Chinese goods at similar low rates. It was observed that the client habitually pushes for price reductions three times during negotiations. By adapting to this pattern and strategically managing the pricing rhythm, a new contract was successfully secured.

Case Study: 2024 Incident & Resolution:

In 2024, our offer stood at FOB USD 620/MT. At this point, we had maintained stable cooperation with the client for three years, supplying approximately 500 MT per year (2-3 orders annually). Despite this, the client continued sourcing quotes from other Chinese suppliers. Qinjin Graphite offered a price of FOB USD 580/MT—a figure approximately USD 300/MT below market cost and barely covering our production expenses.

Driven by the pursuit of lower costs, the client placed a trial order of 72 MT with Qinjin Graphite and paid 100% in advance. However, Qinjin only shipped 66 MT. Upon usage, the client experienced severe electrode breakage, leading to increased production costs. Consequently, they became reluctant to use the remaining stock unless blending it with our products.

The client requested assistance in recovering the payment for the undelivered 6 MT. We mediated the dispute, resulting in an agreement where Qinjin Graphite shipped the 6 MT to our factory to be consolidated with the client’s next order. This incident significantly strengthened our relationship, and the client now relies exclusively on our products for their stable quality.