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Local protectionism led to the implementation of the state's macro-control policies and the destruction of the environment and resources. Ferro-silicon production is a high-energy-consuming, high-pollution, resource-based product. In order to promote industrial restructuring and realize sustained and healthy development, the state has successively introduced a series of policies in terms of environmental protection, export tax rebates, and transportation, limiting the blindness of the silicon iron industry. development of. However, due to the fact that our country is mostly a private enterprise with a relatively small scale, its distribution is very low and its local development is unbalanced, which makes it more difficult to implement the policy uniformly. At the same time, as environmental protection input costs account for about 25% of product costs, some companies with weaker capabilities still cannot make timely financial reforms. In some areas, in pursuit of economic interests, there is a certain degree of local protectionism, resulting in nearly 80% of ferrosilicon production enterprises Dust removal and other environmental protection facilities cause serious pollution to the environment.
The disorderly competition in the ferrosilicon industry has intensified the conflict between supply and demand
In recent years, ferrosilicon production in China has been growing rapidly due to the continuous recovery of the steel market and the continuous increase in steel prices. Various localities have competed to launch rampant capacity expansion, especially in the major producing areas of ferrosilicon alloys such as Inner Mongolia, Ningxia, Gansu, and Qinghai. , Ferro-silicon alloy manufacturers continue to emerge, export volume is increasing, becoming the world's major producer and supplier of ferrosilicon. However, due to new projects blindly launched, the rapid expansion of production capacity, the contradiction between supply and demand highlights, it is understood that the domestic market capacity of ferrosilicon is about 1.7 million tons, the export volume is about 1 million tons, the overall demand is between 2.7 million and 3 million tons. The domestic ferrosilicon production capacity has exceeded 5 million tons and the production capacity is seriously in excess. In addition, silicon-based alloys belong to low-end products with low added value in ferroalloys, and they have a large price difference compared with ferro-alloys such as vanadium iron and tungsten iron. The gap has led to price competition among enterprises, frequent price fluctuations, and serious constraints on the development of the industry.
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