The tender price is also 2,400 yuan per tonne (29%) than what the eastern Chinese mill had sought for July-delivery material.
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,...