China will dominate the world market Ferroalloy

The development of the iron and steel industry led to a global increase in demand ferroalloy, and the Chinese ferroalloy production capacity and output, China's demand for iron. Ferroalloy production and supply costs in the world ferroalloy users and producers have a major impact. Looking at the present situation, at least in the year 2010, China in the world ferroalloy consumption and supply-side dominant position will not change. Ferroalloy international market will largely depend on the Chinese ferroalloy industry in the development of world steel production.
CRU International Company estimates that before 2010, world crude steel production will increase by 262 million tons, in 2006-2010, the world crude steel grew at an average rate of 4.30%. In the year 2010, with China as the dominant Asia will increase by 203 million metric tons of steel output, About three-quarters of the incremental crude steel from Asia.
2006, in addition to China and India, the production of stainless steel has increased significantly, Europe and Japan, The United States has a stainless steel production increased in varying degrees. In early 2006, the world stainless steel production declined, however, to take a number of corrective measures, 2006 world production of stainless steel market growth by 5.9%, higher than the long-term growth rate of crude steel. It is estimated that by 2010, world stainless steel output will reach 33.4 million tons.
Stainless steel output growth, there will be the problem of unbalanced growth. CRU International estimated 2006-2010, the Chinese stainless steel production will increase to 6.8 million tons. In the past five years, China will continue to increase investment, the market demand will continue to expand, Stainless steel output tripling in 2010 to reach 10.4 million tons.
International market demand for iron since 2001, world crude steel production increased dramatically. yield a net increase of more than 300 million tons, which makes global demand for iron increased dramatically. 2002-2004, China's apparent consumption of the increased exposure in other parts of the world to reduce demand.
2005, in addition to China other than the reduction of steel output, World demand for ferrosilicon a 4.3% decrease. Western countries of ferrosilicon, and silicomanganese high-carbon ferromanganese and the sharp decline in demand. 2005 China's apparent consumption increased again to further obscure the territories outside China and the country needs drastic cut ferroalloy few facts. @ The second half of 2006, China's steel production was down 13% from the first half of the 5% The demand for iron growth is slowing somewhat, which is that many people in the trade optimistic about the market in 2007.
2007-2010, the global ferromanganese and ferrosilicon demand will continue to rebound. World demand for ferrosilicon will gradually close to the world demand for crude steel output growth. CRU International Corporation expects in 2007-2010, World ferrosilicon apparent consumption growth rate of 5.1%. annual consumption in 2010 nearly 5.28 million tons of silicon content. As the steelmaking unit consumption changes and the impact of China, 2006-2010, silicomanganese world consumption growth rate of approximately 60%. The next few years, refining and high-carbon ferromanganese 7-3 demand growth will slow down significantly.
High-carbon ferrochrome in the world of apparent consumption in 2010 will reach 7.89 million tons. By 2010, China's demand for ferrochrome is expected to reach 2.39 million tons, around the world the next five years three-quarters of the growth in demand.
J.P.de Linde forecast, in the year 2010, in addition to ferrochrome, China in the world ferroalloy market share will continue to increase. Western Ferrosilicon enterprises, as the market and cost factors, the immediate and long-term market prospects will be quite different.
Because electricity and rising production costs, Ukraine and Western countries ferrosilicon future industrial production expanded less likely. Although in recent years the global annual output of ferrosilicon will be increasing at a rate of 5.6%, but most of the growth will come from China. Before 2010, China's ferrosilicon exports mainly depends on the volume of domestic production and output growth, and domestic demand increases. J.P.de Linde, Although the Chinese government and ferroalloy production, "a high-two" restrictions on the export of products, However, the Chinese ferrosilicon exports in the 2007-2008 period, will continue to increase. Western countries to compensate for the production decline.
2004 global production of high-carbon ferromanganese led to a substantial increase in the surplus market, in 2005, silicomanganese production began to increase and the rates are higher. CRU International estimated that the world ferromanganese 2006-2010 the average growth rate of 4.6%. Meanwhile, despite China's 2006 high-carbon ferrochrome output growing faster, but the next few years China's growth rate will slow down, 2010 China will import ferrochrome increased to 150 million tons.
Ferroalloy production stage by entering the high cost of the oil price increases and new generating capacity needed of the impact of Price will be in many countries continue to climb. Before 2010, many ferroalloy enterprises will continue to bear the rising price pressures, especially in China. When introducing the mechanism of competition into the electricity market, the market price for iron enterprises will bring obvious opportunity cost. Most of the ferroalloy plant, the load is adjusted to control price increases in major ways. Meanwhile, the season and time-of-use tariff is lower tariff rates effective way. These China is particularly important, even in 2002 and 2005, electricity prices in China have not increased markedly. its costs have been higher than the world average level, such as pricing and unit consumption combined China's power cost is far higher than Western countries.
2002-2006, the world's ferromanganese surge in the cost of production, This was mainly due to prices of manganese ore and coke prices rise Meanwhile freight also led to a rise in raw material and transport products shipped, the cost increase. In early 2006, as manganese and coke supply surplus, and the prices have come down significantly, ferromanganese production costs drop This, to a certain extent, offset by increases in the prices of electricity. From the second half of 2006 onwards, manganese ore and coke prices constantly rising, So the next few years ferromanganese production costs will continue to rise.
In the next few years, Ferromanganese different factory production and the competitiveness of silicomanganese mainly reflected in the cost of manganese (and the rich ore slag) and manufacturing cost differences . As high-grade ore market price has gone far beyond the mining and transportation costs, Manganese those enterprises with significant cost competitive advantage.