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[Ferro-alloys.com] At the 10th China Ferro-alloys International Conference hosted by www.Ferro-alloys.com on May 31, 2013, , Mr Xue Yongliang, President of Erdos Xijin Kuangye Co.,Ltd, made analysis and prospect for what opportunities and challenges Chinese ferrosilicon industry would face in 2013.

 

Mr Xue pointed out that Chinese steel mills were in rigid demand of ferrosilicon, enabling privately-owned ferrosilicon enterprises as the main ones to keep a basic balance between production and sales. While at present Chinese ferrosilicon enterprises were faced with unprecedented difficulties in terms of reduced profits, shrunk exports, deteriorated survival environment and widening price gaps from foreign enterprises. Price went down as production capacity was overstated; export volumes declined as smuggling was rampant; vicious competition deteriorated the survival environment; Chinese ferrosilicon price differed greatly from Russian market price, even the smuggled price. The recent RMB appreciation and Japanese yen depreciation against US dollar led to more difficult ferrosilicon exports.

 

Referring to the outside challenges, Mr Xue expressed they were mainly from Malaysia’s newly added capacity, Russia’s expanded capacity, Europe’s advanced ferrosilicon production techniques and more serious anti-dumping, and recovery of North America market.