Ann: FY2023 Net Profit After Tax US$18.2 Million & App 4E, page-147

China asks ferroalloy makers for production, capacity data

Jun 7, 2024 at 8:57 am GMT

BEIJING, June 7 (Reuters) -The state-backed China Ferroalloy Industry Association (CFIA) asked producers to provide details on production and capacity, according to a notice sent to members on Friday and seen by Reuters, fuelling market speculation of potential state buying.
Producers of about 10 different alloys used in steelmaking were asked to submit the details in a move it said was made at the request of the National Food and Strategic Reserves Administration, China's state stockpiler.
They were asked to provide the information by June 13, two people familiar with the matter said, declining to be identified as they were not authorised to speak to media.
"It's just a normal investigation and does not necessarily mean that there will be any policies followed," an official from the CFIA told Reuters, confirming the notice but declining to be named.
The National Food and Strategic Reserves Administration did not immediately respond to a Reuters request for comment.
"We have never seen a similar notice as this before...and some people interpreted this as a sign of national buying," said a source at an alloy producers that had received the notice.
The most-traded silicomanganese futures contract CESMc1 on China's Zhengzhou Commodity Exchange closed 1.45% higher at 8,522 yuan ($1,176.49) a metric ton.
The contract had surged 54% from the beginning of the year to 9,786 yuan a ton on May 30, the highest since November 2021. nL3N3GX1RT
It was driven by higher manganese ore price fuelled by fears of tightening supply after major producer South32 S32.AX halted exports after a tropical cyclone damaged infrastructure there and said in April it would take about a year torestart its manganese ore exports from Australia, until between January and March 2025.
The investigation involves silico-manganese, high carbon ferro-manganese, mid-carbon ferro-manganese, extra low carbon ferro-manganese, electrolytic manganese metal, high carbon ferro-chrome, mid-carbon ferro-chrome, and extra low carbon ferro-chrome, the notice showed.