SHANGHAI, Mar 9 (SMM) - Chinese high-carbon ferrochrome output stood at 545,500 mt in February, up 51,500 mt or 10.43% from the previous month and 46,200 mt or 9.25% on the year. The output in Inner Mongolia was 318,400 mt, up 7,900 mt or 2.54% MoM, and that in Guizhou stood at 33,800 mt, up 104.85% MoM. Some ferrochrome plants suffered losses from the high chrome ore prices and the off-season. However, ferrochrome factories were enthusiastic about production amid the further rise in bid price offered by mainstream stainless steel mills in the month and the expected strong recovery of consumption. Plants in the north maintained high operating rates, and those in the south which carried low-priced raw material stocks also ramped up production amid the growing profits.
In March, the output of high-carbon ferrochrome is expected to rise to 569,300 mt. The market heard frequent production reduction plans from stainless steel mills owing to the slower-than-expected recovery of consumption, but the output still stands at a high level, and the ferrochrome demand grows. Besides, the bid price of ferrochrome in March increases, which will push up the manufacturers’ profit margins and keep the output at high levels.
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