5/23/2007

China's exports of ferrosilicon, there are many substantial issues

First, the state macro-control can not curb exports of ferrosilicon. In recent years, the international steel production growth, the large number of ferrosilicon demand for domestic production of ferrosilicon expansion, China has become a major global ferrosilicon production, and supply. Ferrosilicon to inhibit the blind development of the processing industry and reduce environmental pollution, ease the power, transportation and other tense situation, State abolished at the beginning of 2005 ferrosilicon 8% of the export tax rebate rate, In June 1 onwards will ferrosilicon exports tentative rate from zero, to 5%. the same year on August 22 with the inclusion of iron ore processing trade ban catalogs, November 1, 2006 onwards will ferrosilicon exports tentative rate from 5% 10% rise further. The state's series of macro-control policies and reducing the export profits certain extent constraining the ferrosilicon the high energy consumption of resources commodity export momentum. But according to the trade, the current global market demand for ferrosilicon exuberant short period of time will not reverse the situation. As a short period of time can not be from other countries to find a long-term and stable cooperation partner. foreign importers have been gradually accepted by the policy adjustment of China's export prices increased ferrosilicon. Therefore, the state to protect the domestic resources and reduce environmental pollution for the purpose of the macro-control measures have been restrained, ferrosilicon exports failed to play a full role constraints.
Secondly, the export of China's ferrosilicon brought greater pressure on the environment and energy. China's ferrosilicon industry more African state-owned enterprises, small-scale, low concentration, technologically backward, and uneven development. As for the cost of environmental protection input costs of ferrosilicon products 25%, and the pursuit of economic interests, strength is not strong enterprises ignore environmental facilities and resources to transform, Many production enterprises causing no dust, and other environmental protection facilities. Some green features enterprises in order to save production cost in the production process is not open environmental equipment, causing serious environmental pollution.
Third, the low threshold of industry and energy, and transportation costs have increased export enterprises has arisen, leading to disorderly competition, export order in the chaotic situation further aggravated. In recent years, all over the launch ferrosilicon production projects, resulting in the rapid expansion of production capacity. Ningxia example, Helan in Ningxia FERROSILICON as the main raw materials, proximity and low cost. Shizuishan City and is a major base for coal, electricity is rich in resources, All of these FERROSILICON provide adequate resources and energy conditions. Ferrosilicon production coupled with simple technology, by stimulating demand, many small-scale enterprises competing launched ferrosilicon. As new projects blindly started rapid expansion of production capacity, the contradiction between supply and demand highlights. It is learned that China's ferrosilicon market capacity at 170 million tons, with exports of about 100 million tons or less. Overall demand in the 2.7 million-300 million tons, while domestic production of ferrosilicon has more than five million tons, serious excess production capacity, coupled with silicon alloy iron is low value-added and low-end products, iron and vanadium. Tungsten special iron and iron products, than there is a great price gap, leading to competition between enterprises to sell. frequent price fluctuations, seriously hampering the development of the industry.

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