China’s Ulanqab to shut down small furnaces, sending FeCr prices to 20-month high

The city of Ulanqab, a major ferro-alloy production hub in China’s autonomous region of Inner Mongolia, has ordered smelters to shut down their small furnaces. And the expectation of lower supply in the short term immediately boosted sentiment in the spot market, sending Chinese ferro-chrome prices to a 20-month high.

A notice, issued Ulanqab's Ministry of Industry and Information Technology on Friday January 8, ordered small furnaces with a power consumption of 250,000 kVA and below to be idled. The move is in line with a draft of measures proposed by the Development and Reform Commission in Inner Mongolia to ensure its dual control of the total amount and intensity of energy consumption, Fastmarkets understands.

Populated with a number of large-sized ferro-chrome producers, the monthly high-carbon ferro-chrome output in Ulanqab is approximately 200,000 tonnes, market participants...

Published

Siyi Liu

January 13, 2021

04:32 GMT

Shanghai