China's ferrochrome oversupply due to low demand
11 Apr 2023 16:10 reported by Isora
Due to less demand shown by downstream users, China's ferrochrome production capacity faces oversupply, causing the fundamental support to become weak.
Since there are a few deals closed in the market, local mills in the southern region decided to concentratively reduce or even suspend their production. According to statistics, about 11 mills have recently suspended their production, while the total production of April is estimated to go down by 80,000 tons.
As downstream consumption recovered slowly in March, mills also experienced certain pressure. In addition, market news reveals that China now receives 40% fewer stainless steel export orders than before, another phenomenon that proves the generally weak demand.
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