On Wednesday December 30, Xinganglian Metallurgy (XGL) issued a notice saying that it will raise its offer price in the spot market. The company, which is China’s top ferro-chrome producer, produced around 978,500 tonnes of high-carbon material in 2019, according to market participants.
“Due to a change in policy, increased transport fees, semi-coke prices, coke prices and electricity rates, the production costs of high-carbon ferro-chrome have risen significantly. The company has decided to increase prices to 6,500 yuan ($1,006) per tonne ex-works; our price settlement with non-major mills will no longer be related to that with major mills, and we will still abide to those contracts previously signed,” it said.
These reasons were also cited by Mintal Group Chrome Technology in a similar announcement on December 31, in which it specified uncertainties in ferro-alloy production after China’s Inner Mongolia region proposed a series of new measures...
