China: Domestic ferro chrome prices climb on rising demand

Ferro chrome market in China showed positive trends as demand has improved. High-carbon ferro chrome prices rose by RMB 300/t ($42/t) to RMB 8,850-9,050/t ($1,229-1,257/t).

Meanwhile medium-carbon prices were up by RMB 100/t ($14/t) to RMB 14,200-14,300/t ($1,972-1,986/t). All prices include tax and ex-works.

The factors that drive ferro chrome market were:

Heightened demand: Prices rose due to increased demand and optimism in the market. The recent price increase in Qingshan has had a significant impact on boosting confidence among ferro chrome factories and traders.

As a result, finding low-priced spot resources were difficult to locate in the market.

Stability in chrome ore market: It appeared that the chrome ore market was consistent, with an improved trading atmosphere and average transaction performance. Despite a strong downstream ferro chrome market sentiments, manufacturers exercised caution in purchasing chrome ore due to limited demand.

Chrome ore traders maintain strong offers: The total chrome ore inventory at the port is high, indicating a relatively loose supply. However, chrome ore traders showed a strong price support mentality and are not inclined to lower prices.

Positive stainless steel market: The downstream stainless steel market remained robust, with an improved trading atmosphere. The market for high-carbon ferro chrome has also seen a turnaround, with prices stabilising due to cost support. While most merchants have maintained stable prices and awaits further orders.

Outlook

The ferro chrome market is expected to exhibit short-term stability driven by positive developments. However, Chinese stainless steel giant, Tsingshan, increased its ferro chrome tender prices for April delivery by RMB 500/t ($69/t) to RMB 8,995/t ($1,250/t) DAP including taxes. This price hike indicates potential confidence in the market and could provide some upward support to prices.

Additionally, Closely following these positive market cues, particularly ferro chrome tender prices and overall market sentiment, is crucial for navigating the ferro chrome market effectively. This will allow market participants to make informed decisions based on the latest trends.

Note: This article has been written in accordance with an agreement between CBC and BigMint.