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[Ferro-alloys.com] Most steel mills are losing money and they have trimmed or are trimming production. This directly caused ferrosilicon enterprises to change their production plan. Steel mills mostly voluntarily trim or halt production and it led to the decreasing bidding amount of ferrosilicon. A ferrosilicon enterprise in Lanzhou has stopped exporting ferrosilicon while this enterprise exported quite large amount of ferrosilicon in August, 2015.

Influenced by the dropping export price and low overseas demands, ferrosilicon enterprises receive fewer orders. Since the export market is unpromising, ferrosilicon producers have to strengthen efforts to explore domestic market.

Two enterprises in Qinghai and Xining have lowered their export price of ferrosilicon 75# to USD 1,200/mt. And these two enterprises were on the list of Top 10 ferrosilicon exporting enterprises in August, 2015.

During the interview, some personage said that ferrosilicon market would consolidate mildly and the low demand is still the bottleneck. In short period, ferrosilicon market will remain in poor performance.

The main reason for ferrosilicon market recession is the imbalance between supply and demand: surplus supply and inadequate demand. Many ferrosilicon producers are reluctant to offer their price or hoard their products in hope of selling at a better price when the whole market is getting better.

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• [Editor:Chen Lian Hai]