Chinese ferro-chrome production so far unaffected by power shortages in Inner Mongolia, market wary of possible disruption from mid-April

Electricity constraints in Inner Mongolia, one of China's major ferro-chrome production hubs, have to date not been as severe as expected and their potential negative effect on ferro-chrome production will likely only be felt from mid-April onwards, sources told Fastmarkets.

The city of Ulanqab in China’s autonomous region of Inner Mongolia is expected to experience severe power shortages in April and May, which is expected to result in restrictions on electricity usage. So far, ferro-chrome production in Inner Mongolia, which accounts for more than 50% of China's total volume, has been unaffected, sources said, despite some reports of power cuts. Inner Mongolia produced approximately 2.82 million tonnes of high carbon ferro-chrome in 2018, accounting for 53.5% of the country’s total volume of around 5.27 million tonnes, according to market sources. “Our production is as usual,” an Inner Mongolia ferro-chrome smelter told Fastmarkets on April 4. But the source added that ferro-chrome production in Inner Mongolia might be disrupted from mid-April onwards when maintenance work on local electricity equipment is set to be...

Published

Janie Davies

Amy Lv

April 08, 2019

09:25 GMT

Shanghai, London