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China Announces Names Of Producers And Traders Qualified For Exports Of Ferro-Alloys
= 156 Companies Have Been Selected As Exporters Of FeMn, FeSi And SiMn, Effective From 1st Jan. / 2009
The Central Government of China (The Ministry of Commerce) announced on the 2nd of December the names of enterprises qualified for exports of ferro-alloys produced in China. Consequently, only the companies qualified by the Ministry of Commerce are allowed to obtain EL (export licenses) and are able to exports ferro-alloys from China, effective from the 1st January of 2009.

According to this announcement, 67 producers and 89 traders, totalling to 156 companies, have been listed as the qualified exporters, who are able to obtain the licenses for exports of ferro-manganese, silico-manganese and ferro-silicon from China.

Also, apart from the three ferro-alloys as mentioned above, 55 producers and 55 traders, totalling to 110 companies, have been selected as the qualified exporters, who are able to obtain the licenses for exports of special ferro-alloys, including ferro-chrome and so on. For a reference, the regulations for exports of molybdenum products (ferro-molybdenum and molybdenum oxide) have been enforced during the period of July 2007 to December 2008 and the system to allocate exportable quantities and to qualify exporters (producers and traders) has been put in practice. Therefore, molybdenum has been excluded from the items announced in this time.

In order to put the brake on exports of Chinese ferro-alloys, the Central Government of China has implemented various countermeasures in the last several years. Its decisive factor is to raise the duties on exports of ferro-alloys from China and, as a matter of fact, the export duties have raised to 20 - 25% from January of 2008. However, the measure to raise export duties has come to a sort of the limitation, because this raise of the duties enables exporters to pass on part of cost increase to the prices for exports in order to cover an additional charge.

A foreshadowing to strengthen the regulations for exports of Chinese ferro-alloys by the system to qualify exporters has already come up with EL system (to obtain in advance export license) and registration of exporters enforced from January of 2007. This EL system was merely that local government issues export licenses to producers, and an effect of this system was nearly nothing. However, the procedure to register exporters has become an important preparation to control exports of ferro-alloys from China.

From a point of view of the countermeasures for environmental pollution and energy saving as intended by the Central Government of China, the regulations for exports of Chinese ferro-alloys as mentioned above are thought to be not so successful. Therefore, the Government decided in July of 2008 the system to qualify producers and traders for exports of ferro-alloys. The Chinese companies concerned in exports of ferro-alloys are estimated to be more than 700 enterprises and, in case of manganese and silicon ferro-alloys, it took 3 months to investigate its applicants from various points and 156 companies have been finally qualified in December as suitable exporters of Chinese ferro-alloys.

Also, the authorities concerned said that, prior to exports of ferro-alloys from China, it is required to attach the contracts on sales of ferro-alloys concluded between producers and traders and this procedure allows to obtain export licenses, resulting in prevention of so-called illegal exports. Namely, the companies, which are not qualified as suitable exporters, are unable to buy or to sell ferro-alloys for exports from China.
last modified : Tue 09 Dec, 2008 [11:35]
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