Ann: Dividend Policy, page-38

Production costs are moving up in China.

Manganese and silicon: The market for manganese and silicon is running stably. Last week, in terms of cost, China Southern Power Grid raised electricity charges, production costs in Guangxi moved up, and most small and medium-sized enterprises stopped production one after another. According to Mysteel statistics, as of March 15. Of the 30 priced enterprises in Guilin, only 4 are in production, and 87% of them are out of production. Southern manufacturers are suffering serious losses. On the demand side, the prices of steel mills are lower than expected, traders have a wait-and-see attitude, and the willingness to purchase downstream is not high. Looking at this week, with high electricity bills and average spot prices, manufacturers are not active in production, and will still focus on fulfilling early orders; compared with the north, which has a certain cost advantage and is still profitable, it will continue to operate; on the other hand, manganese silicon The cost support is strengthened, and the downside space is narrowed. On the demand side, steel inventory continues to decline, and molten iron production is still rising. From the perspective of steel mill profits and building material consumption, the terminal is still in the process of recovery, but the growth rate is lower than expected. In the case of declining supply in the south, the supply and demand situation may be affected.