[Ferro-alloys.com] According to our investigation recently, it is common view that electricity price subsidy is cancer for EMM industry. Electricity price subsidy reflects the will and interest of local governments and it violates the principal of equal market competition. In addition, subsidy policy is often linked to enterprise scale. The larger the enterprise is, the more subsidies it could usually get. This of course gives rise to expansion impulse and makes overcapacity more severe.

Electricity price subsidy is a way to protect local backward industry for local governments. Giant EMM manufacturers should not apply for this policy. Instead, they should communicated actively with the government and promote fair competition, so that industry consolidation could be accelerated.

Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Please write to zhanggaojian@ferro-alloys.com for help.

• [Editor:Mike.zhang]