In the small print of the latest tariffs, and there is a lot of it, one takeaway that emerged after the dust settled was the increased tariffs on base metals from China. These are not headline making metals like steel and aluminum, but the industrial applications should not be undervalued. As seen in the graph below ferrosilicon operating capacity has upward momentum. The national rate is at a YTD high of 60. Inner Mongolia and Qinghai are operating at the highest capacity of 80 and 73 respectively. Ningxia is behind at 49, but has nearly doubled the January 2018 rate of 29. Gansu is the only province with flat operating numbers. The operating rates are all to say that output of these base metals will not abate due to the tariffs, just that US companies need to find work around for the tariffs.