Analysis on the development trend of Chinese ferroalloy industry during the “Twelfth Five-Year Plan” period

China is a major producer of steel and ferroalloys. At present, the output of ferroalloys in my country accounts for about 40% of the world’s total output. Ferroalloy is an essential auxiliary material for steelmaking, and its usage accounts for about 4% of steel production. The strength and excellence of my country’s iron and steel industry cannot be separated from the support of the ferroalloy industry. How the ferroalloy industry will develop in the future is currently the main contradiction that perplexes the development of the domestic ferroalloy industry.

Chinese ferroalloy industry

                       Chinese ferroalloy industry

Present Situation and Development Direction of Chinese Ferroalloy Industry

The overall situation of Chinese ferroalloy industry is far behind the world’s advanced level. The number and production capacity of Chineses ferroalloy enterprises have grown from more than 800 with 9 million tons since 2000 to as many as 1,800, and the production capacity has jumped to more than 36 million tons. At present, the demand for ferroalloys in China iron and steel industry is only 24 million to 25 million tons, and the actual excess capacity is about 1/3, and the new capacity is more than 2 million tons per year. The contradiction of the trend of excess capacity will continue to intensify. It is estimated that during the “Twelfth Five-Year Plan” period, my country’s steel output will not exceed 800 million tons, and the demand for ferroalloys will not exceed 30 million tons. The current and future deficit of ferroalloy imports and exports will further increase. At the same time, the layout of ferroalloy production enterprises is scattered, the vast majority of enterprises are small in scale, low in electric furnace capacity (about 1/3 of 6300KVA electric furnace and below), simple equipment, serious pollution, and substandard energy conservation and environmental protection. Up to now, less than half of the enterprises have entered the “access Conditions for ferroalloy Industry”. The problems in industrial layout, product structure, production technology, process and equipment, and the quality of employees have seriously restricted the progress of China’s ferroalloy industry.

So, how to improve this problem?

1.Improve industrial concentration and labor productivity

2.Optimize industry variety structure and grade upgrade

3. Accelerate technological progress and gradually reach the world’s advanced level

4. Optimize industrial distribution and move to areas with resource advantages

Generally speaking, the development of Chinese ferroalloy industry requires both internal and external forces. Internal forces cannot be separated from external forces, and external forces must also change through changes in internal forces. We must not only see our own advantages, but also see our own disadvantages, and use our strengths to avoid weaknesses. In this way, it is not only beneficial to the development of my Chinese ferroalloy enterprises, but also conducive to the healthy development of my Chinese ferroalloy industry, and more conducive to the healthy development of my country’s national iron and steel industry. It is imperative to optimize the layout, adjust the industry and product structure, improve the level of equipment, and scale integration. Those who adapt will develop, and those who do not adapt will be eliminated or face the crisis of being eliminated in the future.


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