[Ferro-Alloys.com] Mr. Karl Liu, the president of Ferro-Alloys.com and Sino-Minemet International Supply Chain (Tianjin) visited Ulanqab Ferroalloys Industry Association and the main ferroalloys plants from 17 Oct to 20 Oct in 2023. For the status of ferroalloys development and market performance views as follows:
- The status of Ulanqab Ferroalloys Industry
The main ferroalloys plants main located in Fengzhen city, Chahar Southwest county, Huade county, Chahar West Middle county, Xinghe county, Zhuozi county and Shangdu county industry zone. There are 63 plants operated 207 SAF to produce ferrochrome, siliconmanganese, ferromanganese, ferrosilicon and siliconchrome and other ferroalloys, the SAF include 97 sets 25000KVA-30000KVA, 64 sets 30000KVA and above and 46 sets noble alloy furnaces, which the plants are linw with the industry policy, environment protection and green development, and the total ferroalloy capacity is 11.58 million tons and the production was 7.85 million tons in 2022, which accounted for about 69% of the Inner Mongolia ferroalloys production share, accounted for about 23% of Chinese ferroalloys production share. The manganese ore and chrome ore imported are about 16 million tons per annum now.
- High advantage and strong competitive in Ulanqab
Relying on the location and low logistics cost (The distance from Tinajin port to Ferroalloy Industry Zone was about 300KM -500KM). Green energy and self-electric power account for about 26% in the ferroalloy production cost share (Green energy account for about 20% ), the power cost has the advantage than the other district, and the ferroalloy plants located in the industry zone which is convenient to develop the recycling economy and centralized management. Inner Mongolia especial Ulanqab city has the potential to expand the wind and solar energy and the if developed the new energy and clean energy investment, the green energy would be accounted for about 60% for the cost share in the future and then it will reduce the ferroalloy smelting cost, so it will improve the ferroalloys development capacity. If the ferroalloy industry zones or part of them implement the platform and intelligence management, it is convenient for the business of bonded logistics, centralized procurement and ferroalloy spots warehouse supply chain finance. In conclusion, it will develop the ferroalloy industry healthy when forwarded the green energy to the production, innovative the transition models and improve the supply chain efficiency.
- Forwarding the technology upgrade and improving the competitive
From July 2021, Ulanqab has comprehensively implemented the technical transformation and upgrading for the ferroalloy industry, Which it come true for the high-quality development and the ferroalloy industry go into a standardized, high-level, green production, low-carbon, and intelligent manner. In recent two years, all SAF below 25000 KVA have been dismantled and withdrawn, the siliconmanganese, ferrochrome and other alloy furnaces are sealed, and special alloy furnaces are also sealed if possible. Ferroalloy plants have also actively promoted the comprehensive utilization of waste residue and launched a new batch of projects such as producing rock wool from waste residue and the remaining gas after sealing is used for power generation and methanol production, which has improved the efficiency significantly. Ulanqab has become the largest area, the highest level equipment, and the highest level of energy efficiency in China.
- Raw material market down trend, ferroalloys market operated stability and healthy
The ferroalloy plants have a stable operation normally and the ferroalloys market kept stability and the supply and demand kept related balance compared to last year, manganese ore spot market price down slightly and kept stability and the other raw materials price has a down trend. The cost of funds has decreased and the financing environment has improved in 2023, siliconmanganese production cost down slightly but stability, the rate of ferrochrome production improved and the demand of chrome ore kept stability and the demand of ferrochrome improved slightly compared to last year, the ferroalloy plants almost kept full and healthy production.
Ferro-Alloys.com visited the Zhuozi county bureau of economy and information technology, Ulanqab Ferroalloys Industry Association, Mengyu Ferroalloy, Zhongtai Nickel, Mengda Titanium, Magnificent Brilliance New Materials, Tengfei Ferroalloy, Puyuan Ferroalloy, Ruihao Ferroalloy, Xintai Industry, Shuofeng Ferroalloy, Jitie Ferroalloy, Guoan Ferroalloy, Tianyuan Chemical, Kehan Metallurgical, Wangyuan Industrial, Tianshuo Materials, Shiyang Metal,Jinglei Industrial and Guocheng Indsutrial.
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