SHANGHAI, May 9 (SMM) - According to SMM statistics, the output of high-carbon ferrochrome in April stood at 558,200 mt, down 74,100 mt or 11.76% from the previous month but up 700 mt or 0.12% on the year. The output in Inner Mongolia was 343,200 mt, down 6,200 mt or 1.77% MoM, and that in Guangxi stood at 18,000 mt, down 61.7% on the month. Mainstream stainless steel mills greatly cut the bid price of high-carbon ferrochrome during the month, leading to huge losses for ferrochrome plants in the south. Those factories had to reduce or suspend their production. The output in the north dipped only slightly since the ferrochrome plants in the region were in production with the support of orders received earlier, lower electricity charges, etc.
The output of high-carbon ferrochrome is expected to rise slightly to 570,000 mt in May. In May, the ferrochrome demand will grow with the increase in the stainless steel mills' production schedules. In addition, the bid price of ferrochrome disclosed by Tsingshan Group stands flat from the previous month, which is higher than the market's previous expectations, encouraging some ferrochrome manufacturers in the south to resume production. However, some plants in the north may cut their output due to factors such as power rationing and environmental protection inspection. The overall ferrochrome output, therefore, is expected to rise only slightly in May.
