As a result, Fastmarkets’ price assessment for ferro-chrome, spot, 6-8% C, basis 50% Cr, ddp China
, fell by 600 yuan per tonne (5.7%) to 9,800-10,200 yuan ($1,517-1,579) per tonne on August 31, from 10,400-10,800 yuan per tonne the previous week.
The price drop that followed Tsingshan’s reduction
came with signs of an easing of supply tensions after ferro-chrome production in Inner Mongolia ramped up.
Inner Mongolia produced around 180,000 tonnes of high-carbon ferro-chrome in August, up by 20% from roughly 150,000 tonnes in July, when production was extensively hit by severe power deficits, according to market participants.
Additionally, output increased in regions such as Shandong, Shanxi, Hunan and Guizhou provinces, where new capacity was also expected to be added, Fastmarkets heard.
Despite the increases, monthly output in the production heartland of Inner Mongolia was expected to remain below maximum due...