[Ferrochrome] domestic ferrochrome market is facing tough challenges

First half of 2005, the world's high-carbon iron production and demand Ming has been on the rise, but the market supply shortfall of about 60,000 metric tons; stainless steel production leading to the second half of ferrochrome consumption decline, the market began to supply surplus, the surplus amounted to 152,000 tons. 2005 world high carbon ferrochrome output of about 5.967 million tons, total consumption of 5.951 million tons, supply (production + inventory change) for a total of 6.043 million tons; 2005 annual surplus of supply staff to 92,000 tons. Under its impact, in 2005 the international market ferrochrome prices showed the first half of the rising trend in the second half of the decline. The first half of ferrochrome prices is the main reason for the high growth in demand for stainless steel and ferrochrome supply shortage. 2005 China High-carbon ferrochrome consumption has increased drastically, Martin ore import volume reached a record 310 million tons. China chromium ore lack of resources, coupled with poor quality ore, the bulk of the resources located in remote areas, transport difficulties, Higher freight rates, as a result of domestic ferrochrome enterprises are more likely to use imported ore, thus chrome ore imports in recent years to maintain rapid growth.
Statistics show that China imports 06 ferrochrome 450,000 tons and domestic consumption ferrochrome at 90 million tons, chrome ore imports reached 24.3 million tons, with 05 remaining 50-100 million tons of chromium ore, domestic consumption of 500 million tons or less, in which case the import : India 1.34 million tons, 244,000 tons Iran, Kazakhstan 144,000 tons, 740,000 tons of Turkey. Total chromium ore imports about 2.47 million tons.
Chrome ore imports showed an increase of ferrochrome output growth Local ferrochrome output growth and reduce the number of manganese and iron, nickel iron production being switched to some extent. In 2005 the first three quarters of the international and domestic manganese ferroalloy market has been sluggish, prices slumped. the end of the Japanese domestic market for high-carbon ferromanganese prices of 650 U.S. dollars metric ton. The beginning of the year 1050 U.S. dollars metric ton decreased 38%. Manganese ferroalloy enterprises with declining profitability, and losses increased, some enterprises have produce ferrochrome. thus enabling ferrochrome output grew rapidly to 06, ferrochrome production maintained a stable trend go up, ferrochrome price performance and smooth operation, but in 07 years, in particular India restrictions on exports of chrome ore, Chromium ore import prices substantially higher, and the state differentiated pricing, coke and transportation costs have always maintained a strong upward trend, ferrochrome factory profit margins are being squeezed, meager, even non-profit manufacturers in the fierce competition in the market to support the normal operation of manufacturers, production, produce manganese alloys, Nickel-iron frequently, although the ferrochrome market price remains high But in fact businesses are now faced with a daunting market challenges.