Re-export tariff increases limited impact on the ferroalloy industry

May 22, 2007. The Information Office of the Ministry of Finance issued a revision to the import and export tariff rates mouth documents, said that since June 1, 2007 onwards to further control high energy consumption, high pollution and resource products exports, increase energy, resource-type products, the imports of key parts for the trade balance, by the State Council Tariff Commission, the ninth plenary session for deliberation and approval, and approval by the State Council. China will adjust the import and export of goods tariff. Today, "State Department tentative adjusted merchandise import and export tax notice," the official promulgation, 14 tariff numbers involved ferroalloy related species, which ferrosilicon, and ferrochrome export tariffs by 10% is raised to 15% again so ferroalloy industry is particularly concerned. However, the current abnormal fiery manganese alloy is not included adjustments led to the industry greatly surprised. 1,The current adjustment, ferrosilicon, ferromanganese, silicon, manganese, ferrochrome exports from the current rate of 5% to 10% adjustment, and special alloy and alloy composite parts will be developed from scratch, from the implementation of 10% 0 adjustment. This policy promulgation and enforcement of China's ferroalloy industry will have far-reaching impact of the state's macroeconomic control efforts is evident. For ordinary alloy exports form a certain pressure, for some alloys industry to some extent reduce exports to domestic sales, certain export restrictions.
2, 1-4 in 2007 Ferroalloy production 42.7%% growth in 2007 1-4 China's total iron production reached 4.934 million tons, in 2006 for the same period 3457600 tons, an increase of 42.7%, the rate of increase is still well above the 2006 full year 30.93% increase in the same period last year.
2007 1-4 in the monthly output is higher than the same period in 2006 (Table 1) January-April on the basic considerable increase in the same period last year.
March 2007 ferrochrome imports to 129995.6 tons. exports to 16330.96 tons, in March net imports reached 1.136646 billion tons, reaching the highest place ferrochrome heavily dependent on imports of the status quo does not change soon.
Ferrosilicon In the wake of the December 2005 of 132033.2 tons of high exports, by January 1, 2005 onwards abolish ferroalloy merchandise export rebate policy OK-February export volume hit bottom. November 1, 2006 the state once again against ferroalloy imposed 5% export tariff, started 10%. Ferrosilicon exports again experiencing a big blow But the current adjustment fluctuations in the number and time are much smaller than the previous tariff adjustment shock.
3, increased export tariffs on iron outlook limited impact on the 07 entry, As China's steel market has markedly improved, and the upgrading of steel prices, steel production rapid release, ferroalloy market demand is rapidly increasing, especially in international areas, to improve China's manganese, chromium ore in the month. domestic ferroalloy market prices have also followed suit, even as demand for the issue has also led to the current silicomanganese. ferromanganese alloys, such as the shortage situation.
While state control of energy-consuming industry growth, the other is the strong market demand, and the international dimension of our mineral also constantly upgrading the price so that the number of ferroalloy industry into an awkward position. Although the iron market prices raise rates is not small, but the price hike is an important factor because alloy due to an increase in the cost of upgrading.
Currently Ferrosilicon prices had risen to 6,000 yuan per metric ton (ROD)% The upturn in the steel industry and steel raise the level of profit is to raise steel prices ferrosilicon procurement of the most fundamental reasons, and the increasing cost of electricity price is ferrosilicon prices raise the most direct factor. Steel tariffs in the current upward after the procurement of ferrosilicon chrome and ferroalloy Although we will make certain the initiative, but will still need a short cycle, Ferrosilicon prices affect the trend of the cost of electricity in the state has increased macro-control, resolutely implement differentiated pricing backdrop of the change is more severe, electricity consumption of 9,000 tons of ferrosilicon still cost a lot of pressure, although the export of certain restrictions, stable at 900 yuan per metric ton (FOB) to try to raise difficulties can be imagined, but later the amount was not optimistic about the overall supply, Although some level of exports would have to sell, but in the short term ferrosilicon prices slide conditions is not sufficient.