Persistent Supply Shortage due to Restricted Production on Sudden Power Rationing in Inner Mongolia Keeps Ferrochrome Prices Stable

SHANGHAI, Jan 3 (SMM) - As of January 3, high-carbon ferrochrome in Inner Mongolia was quoted at 8,600-8,800 yuan/mt (Cr50%), flat from the previous trading day. Due to insufficient system output, the power supply of the whole network in Ulanqab, Inner Mongolia during the morning and evening peak was in shortage, and power restrictions were mandated on January 1 and 2. Some of ferrochrome manufacturers had to face 4-6 hours of power cut. The short-term power rationing has no major impact on the monthly output of ferrochrome yet, but if the power rationing extends, the already tight supply of ferrochrome will be further aggravated. With strong cost support, ferrochrome prices are likely to trend higher in the near future under the influence of power rationing.