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| HOME >> Topics List >> April, 2009 >> 10 (Fri) |
| China Is Supposed To Produce Ferro-Alloys On Scale Of 15 Million Tons In 2009 |
| = Ferro-Alloys Producers Association, Asking Government For Measures To Support In Both Of Exports And Imports |
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China is anticipated to produce ferro-alloys on a scale of 14.00 - 15.00 million tons per annum in the calendar year (January - December) of 2009, having a considerable decrease compared with that (18.25 million tons) produced in the preceding year of 2008. This decline is due to the matters, which the output of crude steel in China for 2009 is estimated to come down to 462.3 million tons by a substantial decrease from that (502.0 million tons) for 2008 and the exports of ferro-alloys from China in 2009 are forecasted to decrease to a certain extent. China Ferro-Alloys Producers Association has judged that the quantities of ferro-alloys to be produced in China for 2009 will face many difficulties for depressed requirements from both of domestic and overseas markets as mentioned above and, in order to cope with these severe circumstances, the Association officially requested the Central Government of China to implement the following three points ; (1) In order to accord with the increasing imports of ferro-alloys into China, the duties to be imposed on imports of ferro-alloys are necessary to raise (from 2% at present to 10 - 20%)., (2) It is required to impose newly antidumping duties on imports of specified ferro-alloys., and (3) Preferential treatment for conversion trade on consignment, which was once revoked from November of 2006, has to be revived (preferential measures, such as tax rebates for imports of ores as raw materials, export tax rebates of ferro-alloys as products. However, the Association did not mention about a reduction of the duties imposed on exports of Chinese ferro-alloys, which have been critized as high rates. In relation to a forecast of crude steel to be produced in China, the Government said recently that China is scheduled to produce 462.30 million tons of crude steel in 2009 as decreased from that in 2008 but will recover to a level of 500 million tons per annum in 2011. On the basis of these quantities of crude steel to be produced in China, China Ferro-Alloys Producers Association has assumed the quantities of ferro-alloys to be produced in China for 2009 as raw materials for steel production. According to this assumption, in addition to a decline of domestic demand for ferro-alloys, it seems to be inevitable to have the difficulties to increase exports of Chinese ferro-alloys and, therefore, the total quantity of ferro-alloys to be produced in China for the first half (January - June) of 2009 is estimated to have a considerable decrease of 40% compared with that for the same period of 2008. Even if a recovery of the output for the second half of 2009 is expected, a scale of ferro-alloys to be produced in China for the calendar year of 2009 is thought to come to 14.00 - 15.00 million tons by a substantial decrease of 18 - 23% from that for the preceding year of 2008. Also, the Association has a view that the quantities of ferro-alloys to be traded (exported and imported) by China in 2009 will have a considerable change. Namely, the exports are anticipated to decrease and, on the contrary, the imports are supposed to increase. China exported 3,026,000 tons in total of ferro-alloys in the calendar year of 2008 (also, exported 3,210,000 tons in 2007) but, by taking into account of the exports in the first quarter of 2009, it will be inevitable for China to have a large decline of the exports in the full year of 2009. As a matter of fact, China exported only 177,000 tons of ferro-alloys, including silicon metal, in the first 2 months (January and February) of 2009. On the other hand, China imported 1,310,000 tons in total of ferro-alloys, mainly ferro-chrome, in the calendar year of 2008 (also, imported 1,550,000 tons in 2007) and the imports of ferro-alloys by China in 2009 are anticipated to be active. China actually imported 240,000 tons of ferro-alloys in the first 2 months (January and February) of 2009. In view of the considerably decreased demand for ferro-alloys in the western world, such countries as India, South Africa, and so on are strengthening their offensive to export ferro-alloys for China. Under the circumstances, China Ferro-Alloys Producers Association has asked the Central Government of China for the protective policy for Chinese ferro-alloys by means of raising import duties, introducing antidumping duties, and so on. For reasons of dumping, antidumping duties have been so far imposed on imports of Chinese ferro-alloys in Europe, the USA and Asia, and many trade conflicts have occurred. However, the situation has now changed and the ferro-alloy industry of China is currently asking the authorities concerned for antidumping duties to be imposed on imports of ferro-alloys from overseas countries. |
| last modified : Wed 15 Apr, 2009 [10:28] |
