SMM Output For High-carbon Ferrochrome In July And Forecast For August

SHANGHAI, Aug 14 (SMM) –

China’s output of high-carbon ferrochrome remained stable at 601,500 mt in July, an increase of 1,200 mt, or 0.2% MoM, and an increase of 40,900 mt, or 7.3% YoY. The output in Inner Mongolia was 383,300 mt, an increase of 11,400 mt or 3.06% from the previous month. The output in Sichuan was 29,200 mt, a decrease of 28.78% from the previous month. In July, although bid prices by mainstream steel mills dropped slightly, the decline was smaller than market expectations. The profit margins for northern ferrochrome manufacturers existed, and some new production lines were put into operation, further increasing the output of ferrochrome in Inner Mongolia. However, the opening of the Universiade in Sichuan limited the output of enterprises in the local region.
High-carbon ferrochrome output is expected to be 621,900 in August, which slightly dropped from July. Since the production schedule of stainless steel in August remains at a high level and the bid price from steel mills only dropped slightly, the demand for ferrochrome is relatively high. The previous pessimistic sentiment in the ferrochromium market dissipated and the trading volume expanded. Most ferrochrome factories’ orders were fully booked, making it difficult to find spot goods in the market. Therefore, the ferrochrome quotes trended higher. In Guizhou and Guangxi, due to the rule adjustment of peak and valley electricity prices, enterprises staggered production, reducing electricity costs.