China’s ferro-alloy markets remain strong amid supply tightness; prices set multi-year highs

Prices across China’s ferro-alloy markets, including ferro-chrome, silico-manganese, ferro-manganese and ferro-silicon, continued their upward momentum in the week ended Friday July 30, supported by supply tightness while major producing regions are affected by electricity restrictions.

Spot ferro-chrome prices led the rally among ferro-alloy products with a week-on-week gain of 11% after major stainless steel mills raised their August tender prices by 2,400 yuan ($371) per tonne from the previous month, to a level not seen in the past 13 years. Fastmarkets’ price assessment for ferro-chrome, spot, 6-8% C, basis 50% Cr, ddp China was 11,000-11,500 yuan per tonne on July 27, up by 1,000-1,200 yuan per tonne (10.84%) from 10,000-10,300 yuan per tonne a week earlier, and is now at its highest since October 2008. Similarly, manganese alloy markets strengthened primarily because of tighter supply, despite the negative impact on demand caused by planned production cuts among downstream steelmakers. Guangxi province implemented electricity limitations from July 27 to August 2 with an estimated 5-million-kw power deficit amid continuous summer heat and a shortfall of hydro power, wind power...

Published

Siyi Liu

Jessica Long

August 02, 2021

06:35 GMT

Shanghai