SteelOrbis Shanghai
With the continuous increase in domestic crude steel
production, demand for ferroalloy increases while ferroalloy
production is expected to continue its upward trend in the future. Nevertheless, restricted by the national export policy, ferroalloy exports are unlikely to see a sharp increase. Furthermore, in addition to the anti-dumping measures imposed by US on Chinese ferrosilicomanganese exports, the EU is also considering the initiation of an anti-dumping investigation into Chinese ferrosilicomanganese and ferromanganese exports. In this case, the future export situation of Chinese ferroalloy is not good, to say the least.
Production output of ferroalloy is in bulk, leading to fierce competition among the mills. Thus, the market prices are always down at a low level and it is impossible to see any prospect of a big rebound.
With the price hike of RMB 0.025/kwh in electricity and rising transportation costs, we can expect the
production costs of ferroalloy to continue to climb. The future for the Chinese ferroalloy industry continues to appear very difficult.