<article><p class="lead">Chinese ferro-chrome producer Xinganglian Metallurgy (XGL) has raised its offer price for high-carbon alloy in response to higher feedstock costs and tighter spot supplies.</p><p>The firm today lifted its high-carbon ferro-chrome offer price to 6,500 yuan/t ($996/t) ex-works on a 50pc basis, up from <a href="https://metals.argusmedia.com/newsandanalysis/article/2172099">Yn5,800/t on a delivered basis</a> to Taiyuan Iron and Steel concluded about 10 days ago. </p><p>XGL this month cancelled its longstanding mechanism of setting up offer prices for long-term buyers by following the tender prices released by key stainless steel mills. Many alloy producers regard this mechanism has collided with market fundamentals this month. XGL is China's largest high-carbon ferro-chrome producer with an output of nearly 1mn t in 2019.</p><p>Key stainless steel mills have cut their tender purchase price by Yn100/t for December delivery. But the spot market has faced upwards pressure from reduced alloy output caused by power shortages in production hubs, along with higher production costs driven by increases in chrome ore and metallurgical coke prices, electricity fees and freight costs. </p><p>Argus last assessed the range for 50pc grade ferro-chrome alloy higher at Yn5,950-6,150/t ex-works yesterday compared with Yn5,900-6,100/t ex-works on 24 December. The rise was a result of tighter spot supplies as most alloy producers in Guangxi province started to reduce run rates this week because of electricity shortages, coupled with sustained disruptions in Inner Mongolia and Sichuan provinces. </p></article>
