China's March high-carbon ferrochrome output and April forecast

SMM data showed that the national high-carbon ferrochrome production recovered and rose to 646,200 mt in March, up 9.19% MoM and 2.52% YoY. Specifically, the output in Inner Mongolia was 461,200 mt (up by 22,800 mt or 5.2% MoM), and that in Guizhou was 26,000 mt (up 48.57% MoM). Although bidding prices of mainstream stainless steel mills remained unchanged in March, a large number of ferrochrome smelters suffered losses because of high chrome ore prices. However, as stainless steel production rebounded and coke prices continuously fell, the losses of ferrochrome producers shrank and their production ramped up. In March, a 31-day month, ferrochrome production rose significantly with the end of the Spring Festival.

High-carbon ferrochrome output is expected to make a new record of 701,000 mt in April. In March-April, stainless steel production remained at a high level, elevating the demand for ferrochrome. Earlier, ferrochrome producers kept low operating rates because of huge losses. In mid-March, Tsingshan took the lead in announcing its purchasing price, a sharp increase beyond market expectations. The profits of ferrochrome producers recovered, motivating many to resume production.