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China: Ferro chrome prices edge down by $21/t w-o-w on limited market activity

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Ferro Chrome

BigMint Bureau

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1 Jan 2025, 14:37 IST

China: Ferro chrome prices edge down by $21/t w-o-w on limited market activity

Reduced steel mill operations pressure FeCr market

Chrome ore traders sell material at discounted rates

CBC: The ferro chrome market in China remained subdued, with prices edging down by $21/t over the week. Medium- and high-carbon ferro chrome prices dropped slightly, while the micro-carbon grade remained largely stable. Reduced steel mill operations and lower-than-expected production schedules contributed to the lacklustre market, leading to weak price expectations.

Prices

High-carbon ferro chrome: Prices declined by RMB 200/t ($28/t) w-o-w to RMB 6,900-7,300/t ($945-1,000/t).

Medium-carbon ferro chrome: Prices inched down by RMB 100/t ($14/t) w-o-w to RMB 11,800-12,000/t ($1,617-1,644/t) exw, including taxes.

Factors driving market

Weak chrome ore prices: The chrome ore market remained muted this week, with domestic spot prices softening to move within a limited range. Futures prices of chrome ore from Turkiye, Albania, Iran, Zimbabwe, and Pakistan also remained weak.

Despite some supportive sentiment among futures and spot traders, the downtrend in the ferro chrome market continued to exert pressure on chrome ore, contributing to the latter's declining prices. Due to concerns over capital turnover and potential future price declines, traders are selling at discounted rates to mitigate risks.

Weakness in stainless steel market: The stainless steel market had rebounded following domestic quantitative easing policies, but currently, market fundamentals remain shaky. The supply-demand imbalance continued this week, with sluggish demand forcing the supply side to focus on reducing output.

With limited improvement expected in downstream demand, price pressures are likely to carry on. This continued strain has been reflected in the mining sector, which is under pressure due to price reductions and slower demand.

Outlook

The ferro chrome market is expected to experience minor adjustments in the short term. Steel mill bidding remains slow, with traders exercising caution, while fluctuations in the stainless steel segment may further influence market sentiment and transactions.