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
. The expectation of resultant lower supply in the short term immediately boosted sentiment in the spot market, sending the Chinese domestic ferro-chrome price to a 20-month high.
Fastmarkets’ weekly price assessment for ferro-chrome, spot, 6-8% C, basis 50% Cr, ddp China
surged to 6,700-7,000 yuan ($1,036-1,082) per tonne on Tuesday, up by 650-700 yuan (10.9%) from 6,050-6,300 yuan per tonne a week earlier and the highest level since May 2019.
Simultaneously, Fastmarkets’ ferro-chrome, 50% Cr, import, cif main Chinese ports assessment surged to $0.82 per lb contained Cr on Tuesday, up 4 cents (5%) from $0.78 per lb from the previous pricing session and the highest since May 27, 2019.