FOCUS: Inner Mongolia losing dominance in FeCr production amid China’s carbon-reduction plans

High-carbon ferro-chrome output in Inner Mongolia, China’s leading ferro-alloy producing region, has retreated in the first eight months of the year, while that in the rest of the country has risen, according to market sources.

This comes amid a push by Chinese authorities to reduce emissions in energy-intensive industries, as part of the country’s pledge to achieve carbon neutrality by 2060.
Operations at high-carbon-emitting companies in Inner Mongolia were hindered during the first half of this year amid the local government’s attempt to lower energy consumed per unit of gross domestic product (GDP) in the autonomous region by 3% in 2021.
Inner Mongolia produced 1.30 million tonnes of high-carbon ferro-chrome in the first six months of this year, down by nearly 25% from the same period of last year, according to market participants.
This accounts for roughly 47% of total domestic output over the January-June period, a drop of 10% year on year, market participants told Fastmarkets.

The decline in Inner Mongolia’s production became more pronounced in the third quarter of the year, when operations in...

Published

Siyi Liu

September 06, 2021

07:10 GMT

Shanghai