Tel: +86-372-3175078
E-mail: aydwyj@dwyjgs.com

Contact
ATTN: Li Xin
E-MAIL: aydwyj@dwyjgs.com
TEL: +86-372-3175078
Address: West Of Mengjia Village Road, Longqu Road, Long'an District, Anyang City, Henan Province

Response to the national call for 2016 ferrosilicon industry actively to capacity

2016 central economic work Conference, the "capacity to inventory, to lever, lowering costs, make" five tasks, of which "actively and steadily resolve the overcapacity" first. Meeting stressed that the promotion of economic development, should focus more on improving the quality and efficiency of development and stable economic growth, structural reform should focus more on the supply side; control and should focus more on market behaviour and social expectations. So, according to the national, "structural adjustment, resolve excess supply side" policy, led by the ferrosilicon production area's leading companies in the Midwest, Ferroalloy Association cooperate with organizations around, ferrosilicon industry forum was held recently, the vast majority of production enterprises attended the meeting.

In 2015, facing overcapacity, fesi prices fell for the bluff. And peer competition and slowing demand for market environment, ferrosilicon industry-wide losses into losses slightly from past times. According to incomplete statistics, 2015 more than industry-wide losses of up to 2 billion yuan. January 2014-December 2015, mainstream steel ferrosilicon bidding price decline of more than 2700 Yuan/ton, resulting in heavy losses, some losses of up to 1000 Yuan/ton. Participating companies have said that the markets continue to do so, most enterprises will be discontinued soon. Ferrosilicon margin of price decline range far greater than the cost, even if prices rise to 5000 Yuan/ton (delivery included) above, it is difficult to make up for thousands of Yuan per ton more than loss, it is difficult to allow more than 90% companies get rid of loss-making destiny. While some local governments to maintain economic growth while implementing price concessions and subsidies, but ultimately became the reason of Terminal market prices, step by step, the ferrosilicon enterprises into the killing zone. Ferrosilicon enterprises in some areas due to heavy losses, funding problems, unable to pay electricity bill was forcibly pull power supply Bureau.