China: Domestic ferro chrome prices drop on demand-supply mismatch

The prices of high-carbon ferro chrome in China inched down by RMB 100/t ($14/t) to hover at around RMB 8,750-8,950/t ($1,926-$1,224/t), ex-plant including tax. Similarly, the prices of medium carbon ferro chrome also fell by RMB 100/t this week to RMB 14,500-14,600/t ($1,982-$1,996/t), ex-plant including tax. The prime reason for the decreased prices is an excess supply. As a result, ferro chrome prices dropped on demand-supply mismatch.

Meanwhile, the market for chrome ore remained weak but stable. Downstream factories were already stocked up with what they required, so they did not need much chrome ore. Furthermore, many ships arrived at the port, increasing the availability of chrome ore.

However, the stainless steel market stayed firm. The global stainless steel scenario impacted the Chinese market, causing domestic prices to go up. This made traders adopt a cautious stance while purchasing. Steel mills were short of new orders as global stainless steel demand remained dull w-o-w.

Outlook

The trajectory of the Chinese ferro chrome market is likely to remain dull in the near future as the supply-demand factor is not balanced and domestic demand stayed low, impacted by the globally weak demand scenario.

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.