China imposes measures on ferroalloy market
China's National Development and Reform Commission (NDRC) announced that it would begin to inspect domestic ferroalloy producers to ensure their compliance with production and environmental standards. By the end of this year, the NDRC will publish a list of ferroalloy enterprises that conform to industry standards. The Commission will then carry out inspections of those enterprises by the end of June 2006. The decision aims to regulate the domestic ferroalloy industry in order to prevent blind production and to reduce pollution caused by these producers. According to data from the National Bureau of Statistics of China, the country produced 3.64 million tons of ferroalloys through the first five months of the year, up 17.10 percent year on year. Ferroalloy production continues to increase even though prices have slid recently. In the short run, the steelmakers of China may face ferroalloy shortages, and slight increases in ferroalloy prices may be observed. However, imports will likely compensate for any shortfall in domestic supply. In the long run, the quality of domestic ferroalloys will increase and the ferroalloy industry will be stabilized. This can only benefit China's domestic steel industry.