Officials in Zhongwei city, Ningxia province, have ordered ferro-alloys refineries to shut down to tackle pollution by heavy metals industries during the winter period, immediately pushing up prices of ferro-alloys, including ferro-silicon and silico-manganese.
The announcement on December 3 has exacerbated market concerns over supply tightness and boosted both futures and spot market prices.Ferro-silicon refineries in Ningxia Province have a total production capacity of around 90,000 tonnes per month, accounting for about a quarter of the total volume in China, according to market participants.The citywide production suspension will last until March 10, 2021.This will no doubt keep the price of ferrosilicon rising.
With lockdowns and pandemic restrictions preventing consumers from spending on travel, experiences and services, consumers are instead increasing their spending on durable goods including cars, appliances and other steel-intensive manufactured goods, in a positive development for steel and ferro-alloy markets. If government stimulus also leads to infrastructure investment in the EU and the United States next year, this would be another positive development for steel and ferro-alloy alloy demand in 2021.
More scope for increased steel production and steel product prices were expected through 2021, particularly if an effective Covid-19 vaccine becomes widely available. Europe’s huge financial stimulus package is also scheduled to be ratified and released by mid-2021, which should boost metals demand on a raft of expected infrastructure projects in the region.
(Excerpted in Fastmarkets)
Feng erda Group is committed to serving the steel industry.Production of Ferroalloy and Metal abrasive.Ferrosilicon,Ferrochrome,Ferromanganese and Ferromolybdenum is our hot sales products.It serves large steel mills in India, Europe, South America, etc.Annual output of all kinds of ferroalloy 72,000 tons.We are willing to become a quality supplier to more users.
Fengerda Group
2020.12.12
Post time: Dec-12-2020