about China ferrosilicon import and export
In the global ferrosilicon market, China is the largest producer. At the same time, China is also a major exporter. The import and export of ferrosilicon reflects the competitiveness and strength of China's ferrosilicon. The import and export of ferrosilicon will also affect the market price of ferrosilicon. From the overall data, China's ferrosilicon exports have an absolute advantage over imports.
China is an important exporter of ferrosilicon. In 2019, China exported 386,400 tons of ferrosilicon. In 2020, affected by the global new crown epidemic, the export volume was 276,400 tons. Compared with 2019, the decline is nearly 28.47%. Now the relevant production in overseas markets is gradually picking up. Therefore, the market demand for ferrosilicon is large. The advantage of domestic ferrosilicon export is more obvious.
At present, China's ferrosilicon is mainly exported to Japan, South Korea, the Netherlands and other countries. But because ferrosilicon is a high energy-consuming industry. So China will limit its large output by imposing export tariffs. In this way, an efficient supply for domestic consumption can be guaranteed. Therefore, the proportion of China's total ferrosilicon exports to production has remained relatively stable at around 5%.
In order to enhance the competitiveness of ferrosilicon in the international market and stimulate exports, the export tariff rate of ferrosilicon was reduced in 2017. China lowered the tax rate from 25% to 20%. In 2018, the cumulative export of domestic ferrosilicon was 612,000 tons, a year-on-year increase of 49.74%. The rapid increase in export volumes may be due to the reduction in tax rates.
In May 2021, China announced to restore the export tariff rate of ferrosilicon to 25%. The announcement caused a strong reaction from the market. On the basis of safeguarding the domestic supply and demand relationship, the export order is effectively regulated. This is more conducive to the high-quality development of the ferrosilicon industry.
The development of ferrosilicon is closely linked with the state of economic development. It should not only focus on the market dynamics of electricity, carbon materials, iron-containing and silicon-containing raw materials required for the production of ferrosilicon. At the same time, we must also pay attention to the development of the downstream, especially the steel industry.