SHANGHAI — Chinese ferroalloys output registered a small increase in October on the back of improved demand from the steel sector.

Production averaged 90,387 tonnes per day in October, up 1.2 percent from 89,300 tonnes in September, putting the monthly total at around 2.8 million tonnes, an 11.5-percent increase from a year earlier, according to the country’s National Bureau of Statistics (NBS).

"Demand from steel mills showed an increase in October, with some mills raising bid prices for raw materials and increased purchase volumes," a Beijing-based analyst told AMM sister publication Metal Bulletin.

Production of crude steel climbed nearly 2 percent to 59.1 million tonnes in October compared with September.

Smelters’ production enthusiasm remained high in October because it was the last month of the wet season, when they enjoy lower power tariffs.

China’s ferroalloys output totaled 25.5 million tonnes in the first 10 months of the year, up 10.5 percent from the same period last year, the NBS said.

"I guess output this month will keep around the level of October, as the rising prices of ferroalloys—like ferrosilicon and silicomanganese—will encourage smelters to keep producing," the analyst said.