【SMM Steel】ArcelorMittal Kryvyi Rih will halt its Foundry and Mechanical Plant (LMZ) in three months, cutting over 1,700 jobs. Total cuts exceed 2,400 with the blooming shop also closing. Soaring power costs from infrastructure attacks and expensive imports made steel production unviable. EU's CBAM, effective 2026 with no Ukraine exemption, blocked European market access, drying up LMZ orders.

[SMM Daily Chrome Review: Ore-Side Uptrend Continued, with Cost Support for Ferrochrome] News on March 4, 2026: The ex-factory price of high-carbon ferrochrome in Inner Mongolia was flat MoM from the previous trading day…

The Middle East turmoil triggered by the joint military strikes launched by the United States and Israel against Iran has become the largest geopolitical black swan for the global primary aluminum market, potentially causing supply disruptions on the order of several million mt while also pushing up smelting costs. Coupled with risk-off market sentiment, aluminum price volatility may be amplified. Going forward, it is necessary to remain vigilant against risks such as escalation of the conflict, strait blockades, and raw material supply cutoffs, as well as further impacts on aluminum prices from macro disruptions, and to respond prudently to operational and investment risks arising from supply chain fluctuations.

SMM February 28 news: According to SMM data, the average tax-inclusive full cost of China's aluminum industry in February 2026 fell 0.9% MoM and dropped 5.7% YoY. During the period, alumina raw material costs and auxiliary material costs declined, and the total cost pulled back slightly. The average SMM A00 spot price (January 26–February 25) in February was largely stable, and aluminum profit margins expanded to 7,707 yuan/mt. If the industry calculates based on the monthly average price, 100% of domestic operating aluminum capacity was profitable in February. Cost breakdown: Alumina raw material side : SMM data showed the average SMM alumina index in February was 2,621 yuan/mt (January 26–February 25), down 1.7% MoM. Production cuts at alumina plants during the month shifted inventory to destocking, but after the holiday, some aluminum smelters proactively reduced inventory, resulting in actual demand being lower than theoretical demand. Prices saw only a slight rebound by month-end, and the monthly average price dropped MoM. Entering March, alumina prices face both bullish and bearish factors. On one hand, operating alumina capacity is expected to decline MoM; on the other hand, aluminum smelters’ proactive destocking is expected to reduce demand. Overall, alumina raw material prices are projected to change by a relatively small margin. Auxiliary material market side : Both prebaked anode and fluoride salt prices pulled back in February. In March, prebaked anode and aluminum fluoride prices are expected to maintain a slight downward trend, and auxiliary material costs are projected to decrease. Electricity price side : Electricity prices were generally stable in February, with slight declines in some regions, leading to a small drop in the national average aluminum power cost. Entering March, electricity prices are expected to remain largely stable, and aluminum power costs are projected to hold steady. Overall, SMM expects the weighted average tax-inclusive full cost of China's aluminum industry in March 2026 to be largely stable, averaging around 15,750–16,150 yuan/mt.

During the Chinese New Year holiday in 2026, the SiMn market operated steadily overall, with spot prices maintaining sideways movement. The fluctuation range in the operating rate of alloy plants was relatively small, and the market as a whole exhibited a "supply-demand weak balance with prominent cost support" pattern.

South Africa's Eskom applied to the energy regulator for approval of an interim electricity tariff, offering an 87 cents/kWh preferential rate for Samancor Chrome and the Glencore-Merafe Chrome joint venture. This is a temporary measure aimed at maintaining smelter operations, while parties continue to negotiate a longer-term solution with the goal of further reducing the tariff to 62 cents/kWh. The utility also requested the National Energy Regulator of South Africa to extend the "take-or-pay" obligation exemption for the two enterprises by another 12 months. The exemption pertains to obligations under pricing agreements negotiated with Eskom that took effect in 2024. These agreements stipulate that ferrochrome producers must meet at least 70% of their contracted electricity consumption; however, due to the industry's loss of competitiveness and multiple smelter shutdowns, this condition can no longer be fulfilled. In August last year, Samancor Chrome and the Glencore-Merafe Chrome JV cited operational difficulties arising from these clauses, prompting the regulator to approve a six-month exemption, which is set to expire at the end of January. Eskom's distribution unit head, Gugulethu Dumakude, acknowledged that the interim tariff of 87 cents/kWh is still not enough to restore ferrochrome producers to the production levels envisaged in the pricing agreements, but it would help them slightly increase electricity consumption from current levels. She added that this interim tariff, combined with the "take-or-pay" exemption, would also provide Eskom and the Department of Mineral Resources and Energy with buffer space to finalise a more sustainable electricity pricing solution with the ferrochrome industry. Neels Best, President of the South African Ferroalloy Producers Association, confirmed that the industry needs a tariff of 62 cents/kWh to resume production and avoid the Section 189 retrenchment processes already initiated by several ferroalloy enterprises, including those outside the ferrochrome sector. Therefore, he also argued that the final negotiated solution should not be limited to the ferrochrome industry but should extend to manganese, silicon, and vanadium smelters—all of which are facing operational difficulties due to "escalating electricity prices." Best pointed out that only 4 of South Africa's 48 electric furnace ferrochrome smelters are currently operating; likewise, only 4 of the 19 smelters in other ferroalloy sectors remain in production. He stated, "Today, electricity costs account for 40% to 60% of total production costs in the ferroalloy industry. To sustain the sector, it is crucial to establish an internationally competitive electricity tariff." He also warned that without an electricity pricing policy that supports local mineral beneficiation, South Africa faces widespread deindustrialization and job losses. Theo Morkel, Managing Director of South Africa's Transalloys, further corroborated this view, sharing cost comparison data showing that even under the company's pricing agreement with Eskom, the electricity cost for producing SiMn is as high as $634/mt, far exceeding the international benchmark—where power costs for SiMn production range from as low as $147/mt to a maximum of $338/mt. Thus, Morkel said that while he supports immediately implementing the interim tariff relief for Samancor Chrome and the Glencore-Merafe Chrome JV, the rest of South Africa's ferroalloy industry equally urgently requires similar relief measures, as these sectors also face plant closures and job losses. Tengo Tengela, Trade and Industry Coordinator of the South African Federation of Trade Unions, also expressed support for the electricity tariff relief application, warning that if smelters are forced to shut down, around 300,000 direct and indirect jobs would be at risk. However, he called on the National Energy Regulator of South Africa to approve the application on the condition that the relevant enterprises suspend further retrenchment actions. The South African National Energy Regulator has not yet announced a decision timetable for this application, but Eskom has stated that the relevant approval must be issued by the end of February at the latest.