First of all, my country's current production capacity of medium carbon manganese ferroalloy has increased to a certain extent. According to data released by the China Nonferrous Metals Industry Association, my country's medium carbon ferromanganese alloy production capacity reached 14 million tons in 2019, an increase of 5% from 2018. Moreover, according to incomplete statistics, there are currently more than 100 medium-carbon ferromanganese manufacturers in China, forming a relatively complete supply system.
Secondly, as a key raw material, the growth of market demand for medium carbon manganese ferroalloy mainly depends on the development of the steel industry. According to data released by the Ministry of Industry and Information Technology, my country's steel production reached 890.4 million tons in 2019, a year-on-year increase of 8.3%. In the future, with the further development of my country's economy and the advancement of urbanization, the output of the steel industry is expected to continue to grow. This will further drive the market demand for medium carbon ferromanganese alloys.
However, the current medium-carbon ferromanganese industry is also facing some difficulties and challenges. First, there is a certain degree of overcapacity in the industry. Because the production process of medium carbon ferromanganese alloy is relatively simple, some small production companies can easily enter this market, resulting in a serious oversupply phenomenon in the market. Secondly, the production of medium carbon ferromanganese alloys is highly dependent on the raw material manganese ore. However, the total supply of manganese ore resources is limited, and production growth also faces certain restrictions. Furthermore, the production technology of medium-carbon ferromanganese alloys is relatively mature, product homogeneity is serious, and competition among companies is fierce. This also makes companies face more market risks when expanding production capacity.
In order to deal with these difficulties and challenges, the medium carbon manganese ferroalloy industry can take some measures. First, strengthen integration and collaboration within the industry, promote the survival of the fittest in the industry, and improve the overall competitiveness of enterprises. Secondly, increase technological innovation, develop more high-performance and high-quality products, and improve market competitiveness. Furthermore, we should strengthen the coordinated development with the upstream and downstream industrial chains, optimize the production process, improve production efficiency and quality, and reduce production costs through industrial Internet and intelligent manufacturing.
