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Deadline To Qualify Enterprises For Exports Of Chinese Ferro-Alloys Is Approaching
= Rough Framework To Qualify 107 Companies For Silicon Alloys And 46 Companies For Manganese Alloys
The Central Government of China already announced to introduce the system to issue licenses for exports of ferro-alloys (silicon ferro-alloys, manganese ferro-alloys and special ferro-alloys) from China, to be effective from the 1st January of 2009, and the deadline to qualify exporters (producers and traders) for this system is approaching.

According to an information from China, producers and exporters (traders), who will be able to obtain export licenses, are supposed to be narrowed down to (1) 46 producers (against 91 applicants) and 61 exporters (against 122 applicants) for exports of silicon ferro-alloys and (2) 46 companies in total of producers and exporters (against 91 applicants) for exports of manganese ferro-alloys.

The enterprises in China, which have been engaged in producing ferro-alloys and have participated in exports of ferro-alloys, are said to be approximately 700 companies and, as a matter of fact, 301 enterprises applied the Central Government of China for qualification of exporter.

The orderly exports of Chinese ferro-alloys by means of having narrowed down to qualified exporters have originated from the system to issue approval certificate for exports of Chinese ferro-alloys enforced from the 1st January of 2007 by the Central Government of China. The Government also announced on the 21st August of 2008 the additional regulations for exports of Chinese ferro-alloys, which have to qualify exporters and are scheduled to be effective from the 1st January of 2009. The work to investigate exporters was performed from September of 2008 and the qualified enterprises for exports of ferro-alloys from China have been narrowed down to 153 companies.

The companies, which have been qualified as suitable enterprises for exports of Chinese ferro-alloys, have been conditioned on the followings ; (A) actually exported ferro-alloyus from China (in 2005 to 2007), (B) obtained ISO 9000 certificate, (C) must be enterprises, having fulfilled with various conditions as stipulated by the Ministry of Commerce, and (D) capital of exporter has to be CNY 20.00 million as the minimum. The producers to be qualified must have had actual records, which exported more than 3,000 tons per annum respectively for each of ferro-silicon, silico-manganese and ferro-manganese.

The deadline to apply for qualification of exporter was requested to submit its application to the Ministry of Commerce by the 1st November of 2008 at the latest. The work to qualify exporters has to be cooperated by China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters and China Ferro-Alloys Producers Association.

It was informed that the Central Government of China has narrowed down suitable exporters to qualified enterprises and will not set up the system to allocate quantities of ferro-alloys to be exported from China, which has differed from quota system applied to exports of molybdenum and silicon carbide. Accordingly, the regulations for exports of Chinese ferro-alloys are thought to be mild.

However, when Chinese companies are not qualified as suitable exporters, they are unable to trade ferro-alloys and a panic for exports of Chinese ferro-alloys is supposed to arise. Therefore, in order to dispose of the stocked ferro-alloys, some of exporters are supposed to be in a hurry to sell ferro-alloys at discounted prices. Also, the system to qualify exporters is anticipated to put a certain influence on joint ventures with overseas enterprises and, accordingly, it seems that some of Chines producers have asked the Central Government of China to take into sight of temporary measures for resolution of this problem through China Ferro-Alloys Producers Association..
last modified : Tue 25 Nov, 2008 [10:53]
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