Last week, the metal silicon market showed a complex trend as in the previous week. Overall, the price of metal silicon is still slowly declining. The reasons that affect its decline are as follows:
On the one hand, due to the coming of the rainy season, the electricity supply in the production area of ​​metal silicon is sufficient, and the cost of electricity will be lowered, which will stimulate the increase of production and lead to oversupply. Therefore, manufacturers are eager to sell goods, some foreign customers have been watching the current market, and have a thorough understanding of the market, so they are not eager to buy goods, resulting in very limited export orders and transactions. In addition to some customers who ask for the price, there are very few customers who actually sign the order.
On the other hand, the country has introduced a series of macro-control policies aimed at controlling the production and export of high-energy products. The introduction of these policies will inevitably affect the direction of the metal silicon market. For example, the policy of increasing tariffs has disrupted the thinking of some manufacturers. Also, in July 2005, the government issued new conditions for access to the ferroalloy industry, with the aim of strengthening the management of highly polluting and energy-intensive industries. Therefore, companies that do not meet the new standards will face renovation or closure within one year. As a result, some small-scale enterprises have withdrawn from competition, which will inevitably lead to market confusion.
From the perspective of the price of metal silicon raw materials, there are several reasons for the rise:
1. The raw material suppliers have high purchase prices and limited storage, resulting in a shortage of supply.
2, transportation can not be overloaded, some raw materials such as oil coke, electrodes, coal and other upstream products rose, affecting the cost of raw materials.
On the one hand, due to the coming of the rainy season, the electricity supply in the production area of ​​metal silicon is sufficient, and the cost of electricity will be lowered, which will stimulate the increase of production and lead to oversupply. Therefore, manufacturers are eager to sell goods, some foreign customers have been watching the current market, and have a thorough understanding of the market, so they are not eager to buy goods, resulting in very limited export orders and transactions. In addition to some customers who ask for the price, there are very few customers who actually sign the order.
On the other hand, the country has introduced a series of macro-control policies aimed at controlling the production and export of high-energy products. The introduction of these policies will inevitably affect the direction of the metal silicon market. For example, the policy of increasing tariffs has disrupted the thinking of some manufacturers. Also, in July 2005, the government issued new conditions for access to the ferroalloy industry, with the aim of strengthening the management of highly polluting and energy-intensive industries. Therefore, companies that do not meet the new standards will face renovation or closure within one year. As a result, some small-scale enterprises have withdrawn from competition, which will inevitably lead to market confusion.
From the perspective of the price of metal silicon raw materials, there are several reasons for the rise:
1. The raw material suppliers have high purchase prices and limited storage, resulting in a shortage of supply.
2, transportation can not be overloaded, some raw materials such as oil coke, electrodes, coal and other upstream products rose, affecting the cost of raw materials.
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