China Ferrochrome Output Rises as Hydropower Costs Drop

China saw a sharp increase in high-carbon ferrochrome production in May 2026, driven by a 30 percent drop in hydropower prices in southern regions. Lower energy costs and new capacity in Inner Mongolia allowed manufacturers to maintain operations despite record high chrome ore inventories. While green power consumption is helping some plants stay active, seasonal power shortages in northern China continue to pose a risk. Potential power rationing may lead to production halts, creating volatility in the short-term supply of ferrochrome for the steel industry.