Ferroalloys Market Outlook

Ferroalloys Market Outlook 2012
2012 China Ferroalloys overall market trends and outlook Global economic recovery would be good iron and steel and ferroalloy industry momentum. 2010 forecast world economic recovery will help significantly boost the growth of the global steel industry. According to the World Steel Association Organization predicted in 2012 than in 2011world crude steel production growth of 5% to 8%, in 2012 the apparent consumption of steel will be significantly increased, that is, except for China, North America, Europe and Japan and other developed regions apparent consumption of steel will be higher than in 2009 increased by 17.1%, 12.4% and 14%. Such forecasts help boost consumer confidence in the global steel industry. 2012 iron and steel industry overcapacity will continue to cause the Chinese government's attention. Annual steel production is still expected to at least maintain the level at 5.5 million tons. Closely linked with theiron alloy of stainless steel market will turnaround. Reduce the production of 200 series stainless steel, high nickel chromium content increased 300 series and 400 series stainless steel products output, to reduce the waste of resources, which will boost the consumption of alloy products. Global stainless steel production is expected in 2010 than in 2009 increased by 7% to 10% to about 25 million tons, and China's steel production will account for 40% of global output. Based on this forecast, 2012 China's output of ferroalloy in 2009 will also be compared to a 5% to 10% growth. Chinese ferroalloy products will continue to domestic-oriented and export situation will be better than 2011. 2012, China will continue to stimulate the pull policy role, in addition to the bulk alloy products to maintain a steady demand, the refining of special alloy products, including product demand will be greater than in 2011. The improvement of the international steel market demand will make China ferroalloy export pressures have eased, but the expected appreciation of the RMB and foreign anti-dumping and other trade protection may lead to uncertainty in the Chinese ferroalloy export situation will be more severe. Meanwhile, the ferroalloy imports, especially imports of chromium products will steadily increase. Main bulk ferroalloy products prices will be higher than in 2011. Chinese ferroalloy production of low-cost advantage will eventually end, the price of iron alloy would be in strict accordance with market demand, cost and rational adjustments to gradually emerging from the market price of steel in 2012, the average price of ferroalloy products should be slightly higher than in 2011, so as to to ensure market supply and demand balance. Variety of view points: Silicon alloy: domestic and international markets in 2012 the consumption of the quantity and average price level than in 2011 will be improved significantly. Especially from the second quarter, with Europe and the United States steel production complex yields the further enhancement of the dependence of Chinese ferrosilicon followed up, the Chinese ferrosilicon price may be raised in the second half. Manganese alloys: China's manganese alloy production accounting for about 50% of the ferroalloy production, ferroalloy production enterprises in China is to determine the costs and benefits of key products. From the analysis of the current situation, in 2012 the average manganese alloy will be higher than the overall price level in 2009, but the price will be much room for growth is the misuse of raw materials and electricity. 2012, price movements will be affected by cost factors and the supply-demand gap change, shaking up and down. Ferrochrome alloys: stainless steel production in China increased rapidly growing demand of the ferrochromium, although China ferrochrome production capacity of 3 million tons of stainless steel can meet the growing demand in China, but the cost advantage of ferrochromium imports, China's annual stainless steel production with about 40% of high-carbon ferrochrome from imports, so the international market price of ferrochrome ferrochromium market price in China still plays the role of shocks and stabilize the. But the domestic medium and low, micro ferrochromium in the domestic market still relatively initiative. Ferroalloy enterprises face competitive situation will be more severe. China's ferroalloy business to achieve sustainable development, faced with excess capacity, environmental pollution, inadequate control of resources, poor corporate cost control, product structure is irrational, and weak corporate control market, and many other issues. 2010, the state will continue to increase ferroalloy industry reform and rectification, and gradually begin to address these problems, overall control, rational distribution and improve the industrial concentration will be China's ferroalloy industry, the focus of work in 2012. China ferroalloy enterprises themselves bigger and stronger, and enhance their competitiveness, was again on the agenda. Alloy iron and steel industry in China is an important pillar for the development of one of the sex industry, iron and steel industrial structure adjustment and upgrading and development is inseparable from ferroalloy industry's progress and development, the Chinese iron and steel industries as well as the development of China's ferroalloy industry opportunities. At present, the actual annual output of iron together has reached 20 million tons, accounting for 45% of the global ferroalloy production, are fully capable of ensuring the needs of China's steel industry and the export of certain products supply the international market. China's ferroalloy industry in the 21st century is still not the "sunset industries", there is still huge potential development opportunities. With the development potential of mining, with the gradual growth of steel demand, China's ferroalloy market confidence in the daily boost.