Currently the entire ferroalloy market seems to enter the downstream channel, silicomanganese market is also weak, with prices falling. A lot of manufacturers said it is difficult for them to cover the cost in low-profit business.
It is reported that: Recently, the State Development and Reform Commission, State Electricity Regulatory Commission, the National Energy Bureau jointly issued " notice of clean-up preferential tariff for high energy-consuming enterprises and other issues" to comprehensively clear up preferential tariff for high energy-consuming enterprises, such as electrolytic aluminum, ferroalloy, calcium carbide to curb blind development of high energy consumption and high pollution industry, , as well as to promote energy conservation and structural adjustment.
Because preferential rates was not lifted until June, some factories have not taken any measure to cut production. On the other hand, because market demand is low, they had to sell so stock for capital turnover. Some manufacturers will have a painful experience. Remove of preferential rates will inevitably lead to rapid increase in production costs, coupled with uncertain market demand which is extremely low, manufacturers can only cut production or shut down.
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