Tsingshan issues highest ferro-chrome tender price in 13 years

China’s leading stainless steel producer, Tsingshan Group, has set its tender price for August-delivery ferro-chrome at 10,795 yuan ($1,665) per tonne, the company announced on Monday July 26. This is its highest tender price since September 2008.

The tender price is also 2,400 yuan per tonne (29%) than what the eastern Chinese mill had sought for July-delivery material.
Supply interruptions
Market participants attributed the price increase to supply interruptions amid power shortages in China’s Inner Mongolia autonomous region in the last two months. Inner Mongolia is a major supplier of ferro-chrome.
Smelters in the autonomous region have been experiencing electricity cuts since late May due to a decline in the supply of thermal and wind power. The situation has worsened since mid-July.

The city of Ulanqab, where many large smelters are located, has repeatedly ordered production cuts due to the electricity deficit, resulting in significant shortfalls in ferro-chrome output,...

Published

Siyi Liu

July 26, 2021

10:21 GMT

Shanghai