China ferroalloy producers facing end-game over power pricing
Mar 20, 2009 | 10:02 AM
The Chinese government's cancellation of electricity price discounts may have sounded the death knell for many ferroalloy producers in China who were already under pressure from low demand and prices.
Many ferroalloy producers are expected to cut production or close down, with higher electricity prices expected to add 300 to 400 yuan ($44 to $59) per tonne to ferrochrome producers' costs and 600 to 700 yuan ($88 to $103) per tonne for ferrosilicon producers.
China's ferroalloy production plunged to about 20 percent of capacity at the end of last year as the bottom fell out of the market, although it has gradually worked its way back to about 30 percent. "I think it may retreat to 10 to 20 percent in some areas in April," a Beijing trader said.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.