Ferroalloys consumption prospects bleak, supply drops slowly

摘要

Production started to recover in September on better weather conditions and a drop in electricity shortage in China. However, the pace of the seasonal upturn in demand is below the usual levels seen in autumn. This may lead to another rise in China’s steel oversupply and the consequent decline in finished products cost. Thus, there is a higher chance of mills losing positive margins, which will trigger the resumption of steel production cuts in China.