China's ferrochrome output increased slightly in January

According to Hainan West Asia, China's high-carbon ferrochrome production increased slightly to 63.56 in January 2024, an increase of 8,700 tons month-on-month, an increase of 1.39%; a year-on-year increase of 141,600 tons, an increase of 28.66%.

Among them, the output in Inner Mongolia was 461,600 tons, an increase of 18,200 tons or 4.1% month-on-month; the output in Guizhou was 29,500 tons, a decrease of 18.06% month-on-month.

The output of high-carbon ferrochromium in February is expected to be 592,200 tons, a further decrease from the output in January. Steel recruitment in February was announced to be flat. The decrease in steel mill operating rates during the month was limited, and demand for ferrochromium remained at a high level. However, most of the steel mills' procurement needs before the Spring Festival have been met in advance. Affected by the Spring Festival holiday, transportation during the period was limited, and the trading time in February was short. In addition, the inversion of the steel mills seriously reduced the output outside the long-term contract, and the market was mostly based on long-term contract delivery. Retail transactions limited. Although the production time in February was short, some iron plants in the south took advantage of the Spring Festival holiday to suspend production. However, in the north, new production is still expected to be released after the festival. The decline in ferrochromium production in February is expected to be limited.

For more information on ferroalloy price trends and market conditions, please contact Hainan West Asia Group.