Ferro-alloy futures jump as Inner Mongolia moves to raise electricity rates, remove discounts

Ferro-alloy futures in China rose on Thursday February 4 following news that the Development and Reform Commission in the country’s Inner Mongolia region had announced a series of changes to local electricity rates.

“Starting from February 10, west Inner Mongolia will remove discounts for large power usage, and smelters with their own power plants will have to pay cross-subsidization based on the power amount they generate and consume,” the commission said on Thursday.
This means smelters will no longer enjoy a discount for the power they use beyond a certain level.
Previously, the autonomous region granted power users that consumed between 100 million and 500 million kilowatt hours (kWh) a 0.5 cent per kWh discount and a 1 cent per kWh discount for those that consumed between 500 million and 1 billion kWh, according to market participants.
The discount would then increase by 0.5 cent per 500 million kWh used beyond 1 billion kWh, they added.

In addition, Inner Mongolia will...

Published

Siyi Liu

February 05, 2021

07:46 GMT

Shanghai