Chinese's Environmental Control Affect Supply Raw Materials.

Previous policy

    Chinese government has enforced the environment law seriously this year.  A few years earlier they had pushed all factories in the central provinces of China such as Henan, Shanxi, Hebei, Shandong and east coastal province to improve the production process in which some of them chose to move to remote area northwest such as Ningxia and Gansu province where less pollution control and affect less to environment due to near the dessert.

Current policy

     The new environment policy this year will take affect vastly all area in China in which the products that involves to our foundry Industry namely Ferro Silicon, Refractories Coke, SiC and carbon were affected directly.  The big Ferro Silicon factories such as Erdos and other moved to northwest earlier but the products like carbon, Refractories and Coke had tried to improved process instead of relocation.

     Local government needs to take serious action to the policy from central government in which the team of central investigation can interrupt and punish local governors who do not comply with the policy.  This affect clearly on the area that not far from the central government in Beijing, they shut down whole factories in Tianjin area and inspect one by one, who cannot change or improve the process in accordance with the requirements, they will be forced to return their land to the country.

     Standard requirements from government such as clean factory area, dust collectors to control air pollution and water treatment system.  These requirements affect to small and medium factories directly as they are unable to invest immediately in accordance with the above requirements, they were forced to shut down and can resume production once applied to the rules.

     This situation made supply shortage, there are only the big factories can produce during this period, the demand soar higher than the suppliability, soaring price response to this situation as the traders or manufacturers had monopolized and increased the price as their will in which affect to situation more worse.