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[Ferro-Alloys.com]m.njzxhs.com ’s message: As is shown in this picture, the price of ferrochrome in China is presented a downward trend in the past two years. It’s obvious that there is an 800 yuan decline in the first half of 2013. The decline of the ferrochrome’s price is slower gradually from the second half of 2013 to August 2014, but it never stops. Steel plants pressed the tender price of ferrochrome by by 50 to 100 yuan every month to hit bottom line. The high-carbon ferrochrome’s tender price of Taiyuan steel plant has declined to RMB6,250/mt (delivery price containing tax)in August 2014,which has declined RMB500/mt compared to RMB6750/mt at the same time in last year.

Although ferrochrome manufactures in China have made great breakthrough and innovation in smelting technology ,mining ration, energy saving ,equipment and so on, some plants whose raw material and electricity costs are high, drop and stop production constantly with the pressure of iron’s price declining and financing difficulties. What’s more, the main producing areas in Sichuan Province stepping into wet period are also in trouble. In early August, it’s amazing that a large forrechrome plant in Sichuan Province (annual capacity of over 100,000 tons)plans to transfer production because of the low price in 2014.We can see the hard survival situation in ferrochrome firms.

The imported ferrochrome reach up to 1.127 million tons in the first of 2014, which has increased 38.7% compared to 0.812 million tons in the year-ago period and 55.4% compared to 0.725 million tons two years ago period. Ferrochrome of South Africa reaches to 0.737 million tons, which has increased 75.8% compared to 0.419 million tons the year-ago period and 52.9% compared to 0.482 million tons in the same period of two years ago. Indian ferrochrome has reached to 0.122 million tons in the first half of this year, increasing 0.8% year on year; Zimbabwe ferrochrome has reached to 0.055 million tons, increasing 243% year on year. Globally, except for the expansion in some large firms in China ,South Africa, Zimbabwe and India are also increasing new productivity and increase export volumes to China. In this case, extant ferrochrome firms in China suffer serious competition. In order to survive, they have to achieve logistics, personnel and funding breakthrough.

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• [Editor:tianxiao]