China's output of high-carbon ferrochrome in April

SMM data shows that in April 2024, the national high-carbon ferrochrome output further increased, breaking through the historical peak to 736,800 mt, an increase of 11.43% MoM and 32.47% YoY. Among them, the output in Inner Mongolia was 492,500 mt, an increase of 3.42% from the previous month; the output in Guizhou was 39,500 mt, an increase of 50.92% from the previous month. Stainless steel consumption recovered with the arrival of peak season. Bid prices of major stainless steel mills came earlier than usual and were significantly raised. Improved profit margins motivated ferrochrome plants to put new capacity into operation or resume idled capacity.

Heading into May, stainless steel mills raised their scheduled production further, boosting raw materials demand. This, coupled with high bid prices, will keep ferrochrome plants passionate about production. In particular, power tariffs in Sichuan fell with the passing of dry season, encouraging local ferrochrome plants to resume production across the board. SMM estimates domestic high-carbon ferrochrome output at 750,200 mt in May.