SHANGHAI, Jul 29 (SMM) - High-carbon ferrochrome output fell sharply amid power restrictions. The main production areas, including Inner Mongolia, Guangxi and Sichuan all have power curtailment.
Meanwhile, Shanxi has recently undergone environmental inspections. High-carbon ferrochrome output is unlikely to stabilise and supply to remain tight.
High-carbon ferrochrome output in Inner Mongolia is expected to stand at 173,000 mt in July, down 17.62% on the month and 48.48% on the year; and the output in August is expected to be 168,000 mt without intensifying power curtailment (the reduction is mainly caused by maintenance at mills which lasts 7-10 days in July), a year-on-year decrease of 45.98%. High-carbon ferrochromium supply totalled 450,000 mt in July, down 76,000 mt month on month and 20.56% year on year.
According to SMM survey, steel output declined sharply, but stainless steel output reduced limitedly. Stainless steel plants have strong demand for ferrochrome. High-carbon ferrochrome prices rose sharply amid tight supply, and quotations at individual plants in central China stood at 12,000 yuan/mt.