After experienced the rise of the electricity price, the rise of raw material price, the decrease of the products` price, as the important object controlled by the government’s policy, ferroalloy industry is facing the adjustment now. The plants which produce MN-alloys in Shanxi Province and Inner Mongolia are the biggest MN-alloys producers in China. Under the pressure of both market and government, ferroalloy plants in Shanxi face serious crisis.

    The electricity price is the main cause of the crisis by investigating.The local electricity supplier only allows the plants which owned electricity plants to use half of the electricity plants` production. And the other half need to be sent to the Grid for sale. Recently, the electricity price supplied by the local electricity supplier is ￥0.4-0.45/kwh, and supplied by themselves is ￥0.2-0.25/kwh. The rise of the electricity price, raw material price and freight lead to the rise of the costs of these ferroalloy plants.  The stagnancy of the products` price makes these enterprises face stopping production.

     Because of the shortage of electricity, although the manganese ore resource in Lingqiu is comparatively abundant in China, most of the furnaces in Lingqiu Manganese Industry co., ltd are closed, and the plants around Yinhe were all stopped production. Some of the plants in Shuozhou District stopped production. Leaders in Xinzhou Area also made a declaration of closing the furnaces because to be bad of these enterprise. As the biggest producer of MN-alloys in China，Jinneng Group also faces the same crisis.

     Some ferroalloy plants in Shanxi Province have their own electricity plants, so the cost of power is low. But after the publish of the new policy of the electricity control, some plants may stop production because of the increase of cost. And it may bring on the closing of some electricity plants. The situation is not the same in Inner Mongolia ,the electricity price is ￥0.3-0.35/kwh, and some ferroalloy plants can get favorable policy from the government , so these plants can continue production .

    Therefore, the way that Shanxi`s ferroalloy enterprises get through the crisis in the coming months will be an oriented role in the market. If most of the ferroalloy plants stopped production, the price and the supply of ferroalloy in northern China will be seriously influenced.