While the ferrosilicon situation in China is still fluid, facts are starting to emerge. Smelters in Ningxia province will not meet their government imposed environmental restrictions for 2017, and the authorities are PISSED. The reaction was swift and effective. The plants were not only told to close but authorities cut power off to the smelters and for good measure had troops at the entrance in order to stop all shipments IN AND OUT, even finished goods.
As a results, analyst believe at least 100,000 mt of ferrosilicon production and shipments will be lost in both December and February and possibly longer. Also affected are silicon carbide and magnesium producers in the province. It's going to be especially hard on sellers who are expecting delivery this year.
On the positive note, the restrictions won't affect shipments from Mongolia.
CMC Price at posting:
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