Eased Power Rationing and Increasing Imports to Mitigate Ferrochrome Shortage

SHANGHAI, Oct 25 (SMM) - In September, China imported 214,300 mt of high-carbon ferrochrome, an increase of 64,400 mt or 42.96% from the previous month.

Meanwhile, the output of stainless steel decreased 590,000 mt in September due to power rationing, weakening the demand for ferrochrome.

As the power rationing eases, ferrochrome plants lifted their output. The supply tightness is expected to alleviate.

Recently, the government adjusted the floating ratio of electricity prices in order to improve the revenues of coal-fired power generation enterprises. As such, the high costs of ferrochrome resulted in a big gap between the bid solicitation prices by mainstream steel mills and the market retail prices. But the retail prices lacked upside momentum.