The current national policy for the ferroalloy industry

In recent years, with the hot market of ferrosilicon and silicon metal, various places have been launched and new furnaces have been built in various places. For a time, the country has been exposed to ferrosilicon everywhere. It is a chaotic state. The state has introduced a series of policies and regulations to limit the development of the silicon iron industry. From the aspects of environmental protection, export tax rebates, transportation, furnace models, etc., a large number of small plants were shut down, and regulations banned the construction of new furnaces. However, when we surveyed various places, we found that local governments did not respond to national policies, but most of them did not support it.

The main points are:

1. The state cannot formulate policies in a one-size-fits-all manner; in some places, it may not be possible to shut down all stoves at once because of various reasons. For example, in Minhe, Qinghai Province, the local economic pillar is ferrosilicon. The country did not impose any restrictions on the development of local ferrosilicon. However, it is now necessary to suddenly shut down the furnace that is less than 3,200 kVA. It is necessary to shut down the furnace that does not meet environmental standards. This will affect the local economy. Development gives a fatal blow. Moreover, the natural environment of the area is poor and it is not suitable for the development of other industries. It mainly depends on the ferrosilicon industry to maintain local finances. In Inner Mongolia, they believe that the local area is well-suited for the development of ferrosilicon, low electricity prices, abundant ore and coke, and the current market conditions are so good that the development of ferrosilicon will greatly promote local economic development. The country’s policy does not take into account the specificity of the region. It uses a simple, mandatory law to restrict the development of the entire country. It is an approach that does not conform to the laws of the market.

2. The state's policies do not conform to the laws of the market economy. Most of the local governments think that this kind of restriction of the country belongs to the planned economy and is intended to protect some of the old state-owned enterprises. Because in the ferrosilicon industry, most of them are already private investments, and very few from the banks. Even if they lose money, they will not lose their wealth. The state's restriction is to allow those formerly state-owned enterprises that are not competitive to survive. Many business owners believe that, under the conditions of a market economy, they should give full play to the role of the market in allocating production materials and survive in the market competition. The fate of a company should be determined by the market itself. It cannot be maintained by the state through various temporary policies. As long as the state manages state-owned enterprises well, and they are in compliance with relevant laws and regulations, they should not interfere too much with the development of private enterprises and should be administrated according to law.

3. "Western Development" is almost equivalent to a short document. Many places have reflected that the slogans of the Western Development Conference have been hailed for many years. But in these years, there were almost no policies that truly brought benefits to the western region. Instead, they sent more cheap resources from the west to the east. Develop the east. For example, electricity in Inner Mongolia is obviously not enough for its own use, but it must also be supplied to Beijing. In order to maintain the development of the east, the western region can only sell low-priced resources. And it is under the compulsory distribution of the state. A leader once reluctantly stated that the local electricity price is 0.2-0.3 yuan to be transported to the east. The loss in the middle is a loss on his own side. To them, the electricity price is 0.5-0.7 yuan, which is equal to there. The power sector benefits only because it is located in the east.

It would be better to consume electricity on their own side, which is also very beneficial to the local local economic development. If the electricity is converted into ferrosilicon in the local area and sold, the income will be nearly 10 times higher than selling electricity. Indeed, the same electricity output in the east is higher than the production of such high energy-consuming products in the west. However, this bias in the eastern region that does not provide corresponding subsidy to the west has obviously caused dissatisfaction in many parts of the western region. The development of the eastern part is good, but the western region must also consider that considering the overall situation, the first rich to bring about rich people can not just be empty talk. There can be no reason for the west to fall behind. With regard to national policies, there are still big differences between the local and the central government. Some places even shouted, "If everything is not allowed by the state, you will go and you will surely be able to make a fortune!!" In some places, there are "good officials who do not follow the policies of the state for the good of the people". The state of implementation of national policies varies greatly from place to place, but it is generally not in place. This aspect is based on the local protectionism that only considers the local economy. On the other hand, it is also related to the imbalance of national policies. We hope relevant parties will not attribute the unfavorable policies to the unfavorable implementation of the local government. Can you consider why you have encountered such a big resistance?

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