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[Ferro-Alloys.com] On 17th, October, Mr. Xin Renzhou, Industrial Policy Department of Ministry of Industry and Information Technology of China made a speech on Macro-economy situation and Ferroalloy Industry Policy Analysis

For the macro-economic situation, Mr. Xin said that 2012-2013 economic development in the GDP data showed the end of the high growth in China from rapid development digit figure to maintain only 7-8% development. Meanwhile, industry profits also showed a sharp decline from 1998 to 2008 growth of 35% to 10% from 2009 to 2012, 2014 industrial profit level by only 5% in the first half.

Mr. Xin said that eliminate backward production capacity for high energy-consuming industries already the schedule which means the situation for ferroalloy would be more difficulty in the next one or two years. As for access condition for ferroalloy, 6300KVA submerged arc furnaces are now obligatory eliminated for all alloy products, even for 12500KVA, and obsolete standards may continue to increase in the future. The response to this was tremendous among representatives in the meeting. Representatives expressed their unstatisfactory on the policy of uniformity on all products To ferro-silicon, Silicon-manganese, the policy may be feasible, but not to feasible for special alloy. Given that into consideration, representatives call for criteria of backward production capacity from the environmental point of view rather than the size of arc furnace capacity.

• [Editor:Sophie]