Limited Decline and Persistent Oversupply Characterize July's High-Carbon Ferrochrome Production at 776,000 mt

Based on data from SMM, China's high-carbon ferrochrome production slightly declined in July 2024 to 776,000 metric tons (mt), a month-over-month (MoM) decrease of 25,000 mt or 3.12%, but it increased year-over-year (YoY) by 174,500 mt or 29.01%. Inner Mongolia's contribution was 516,000 mt, down 21,100 mt MoM (3.93% decrease), while Guizhou produced 37,000 mt, registering a 14.94% MoM decline. Despite high bidding prices for high-carbon ferrochrome from stainless steel mills in July, steel mills significantly reduced their procurement outside long-term contracts, leading to a sluggish retail market and a drop in retail ferrochrome prices. The high cost of chrome ore continued to squeeze manufacturers' profit margins, diminishing production enthusiasm. Additionally, equipment maintenance by some manufacturers contributed to the decline in high-carbon ferrochrome production in July