Ulan Qab Saw Large Scale Production Suspension of Ferrochrome Last week

SHANGHAI, Jul 28 (SMM) - Almost all medium-sized plants in Ulan Qab suspended production last week.

Individual producers are scheduling maintenance even with stable production, which is expected to start from mid-August and finish around end-August; operating rates at large-scale ferrochrome plants stood at 30-50%, long-term orders have been delayed for delivery.

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. 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.

Inner Mongolia and Guangxi continued to be affected by power restrictions in August. Environmental inspection panel entered Sichuan. Output in Shanxi, Hunan and Guizhou is expected to increase by about 10,000 mt. Thus, output is unlikely to improve in August.