"[happy New year] SMM CEO Fan Xin delivers New year 2020 message
SMM12 31: 2019 qiu ferroalloy industry are facing increased overcapacity, fierce market competition and other problems. In China, especially in the context of the concentrated release of manganese alloys, the oversupply has led to a sharp drop in the price of manganese ore in the world. Since the fourth quarter, the price of silicon-manganese alloy in China has fallen 1-2% to $730-755 (Chinese warehouse price). In late November, China's port inventory soared to 450-4.7 million tons as a result of a month-on-month decline in crude steel production. Industry insiders said that domestic producers have accumulated a large number of alloy stocks, but the consumption prospects are confused, the development of the domestic ferroalloy industry is in a critical period of competition.
On the other hand, the manganese alloy market in Europe has remained calm since September and prices have been basically stable. In an effort to prevent further falls in prices during the off-season of the Christmas and New year holidays, global manganese ore suppliers have begun cutting supplies. FerroGlobe, Europe's largest local alloy producer, Nikopol and Zaporozhye ferroalloy plants in Ukraine have responded to halving production since mid-November. The move will provide additional support for the price of manganese alloys exported to Europe. Chinese producers should seize the opportunity and export action is urgent.
What do domestic producers need to know to export alloys to European countries?
Necessary qualifications for ferroalloy export to the European Union
The European Union began to implement REACH regulations on June 1, 2008, starting with the regulations on the registration, evaluation, licensing and restriction of chemicals, all known as "Registration, Evaluation, Authorisation and Restriction of Chemicals". Companies are required to successfully submit a registration file of chemical substances to the European Chemicals Management Agency (ECHA) and then obtain an 18-digit registration number. Note: only ferroalloy producers or enterprises with offices in the European Union can register REACH regulations, and traders in non-EU regions cannot register.
Which products need to be registered with REACH? As long as it is sold to the EU market and the annual output exceeds 1 ton / year, it must be registered with REACH regulations for its components, such as manganese metal products (manganese tablets or manganese ingots) directly registered their manganese elements, manganese iron products must register both iron and manganese elements.
The EU Chemicals Catalog Database (EINECS) lists more than 100000 products in the catalogue, of which 30, 000 are common products on the market. More information about this database can be found in https://echa.europa.eu/information-on-chemicals/ec-inventory
Import and Export tax rate of Ferroalloy in China
(current tax rate in 2019)
Under the traditional trading mode, most domestic manufacturers can only look for potential buyers in the interpersonal circle, and the sales channels are very limited. Some companies try to randomly search for overseas steel mills and buyers on the Internet, but this method is time-consuming and high-risk, and the rate of cross-border transactions is low because they can not ensure the authenticity of each other's identity and other information. So how can we find a reliable European buyer?
A famous manganese company in Hunan has contacted Metalshub, a professional digital platform for metal and ferroalloy trading. The platform is free of registration and membership fees, but is subject to a series of KYC audits (Know Your Customer, the account holder's condition review and filing, before the actual transaction can begin. The manganese company saw on the platform a 150-ton metal manganese ingot (LUMP) purchase information from a large European steel mill, so it tried to make an offer. Due to the price and quality advantages of domestic manganese products, on the day the quotation information was sent, the two sides reached an agreement online and immediately arranged the delivery of the goods that month. Finally, both buyers and sellers were very satisfied with this cooperation.
As manganese alloys such as manganese sheet, manganese ingot, manganese nitride and other products are a large number of European steel mills and foundry products, it can be seen that many large domestic manganese plants and traders through professional and reliable digital channels such as Metalshub, to establish a good cooperative relationship with overseas buyers and establish a reputation for its international trade to establish a greater advantage.
Founded in 2016, Metalshub is a pioneer of the digital revolution in metals trade. Metalshub provides a B2B digital platform for metals and ferroalloys, dedicated to making the all-qiu ferroalloy and metals market more efficient. The platform currently offers 17 product categories for the United States, the European Union, Latin America, China, Africa and South Asia: boron, chromium, cobalt, copper, manganese, molybdenum, nickel, niobium, phosphorus, pig iron, carburizer, silicon, sulfur, tin, titanium, tungsten and vanadium. For more information, go to www.metals-hub.com.
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