HONG KONG Chinas ferroalloys production will continue growing in 2013 and prices may see a rally in the coming months, according to the chairman of the China Ferroalloys Industry Association.
"Chinas production of ferroalloys will continue to rise this year but due to the slowdown in steel output, the rise will be (capped)," Liu Weiguo, chairman of the association and general manager of Sinosteel Corp., told delegates at AMM sister publication Metal Bulletins 14th Asian Ferroalloys Conference in Hong Kong March 27.
"Prices of steel and ferroalloys, such as ferrochrome, have dropped a lot in the past two months but the prices will not lose more in the second quarter, and may have a rally in May or June," Liu said.
On March 26, Metal Bulletin reported that Jiuquan Iron & Steel (Group) Co. Ltd. has cut its April purchase price for high-carbon ferrochrome by 450 yuan ($72) to 7,000 yuan ($1,126) per tonne.
Liu hopes the country will introduce policies to support ferroalloys enterprises but said even if theres no supportive policy from the government, the market will likely improve by itself in the third quarter.
A version of this article was first published by AMM sister publication Metal Bulletin.