China: Ferro chrome prices edge down w-o-w amid declining demand, sluggish steel market

• China's chrome ore tags steady; foreign futures weak

  
  
  

• Stainless steel suffers amid wide supply-demand gap
  
  

CBC: China's ferro chrome prices inched down by RMB 150/tonne (t) ($21/t) w-o-w amid subdued demand. The market is muted due to, on the supply side, recent declines in operations at southern China-based steel mills and, on the demand side, lower-than-expected production at steelmakers.

Prices

High-carbon ferro chrome: Prices edged down by RMB 200/t ($28/t) w-o-w to RMB 7,100-7,500/t ($979-1,035/t).

Medium-carbon ferro chrome: Prices dropped by RMB 100/t ($14/t) w-o-w to RMB 12,300-12,400/t ($1,683-1,710/t) exw, including taxes.

Factors driving market

Chrome ore market weakens: The chrome ore market remained muted this week, with domestic spot prices fluctuating within a narrow range. Foreign futures for chrome ore from Turkiye, Albania, Iran, Zimbabwe, and Pakistan were also weak. The pressures of capital turnover and future price drop risks also led to discounts on sales.

Additionally, the ongoing downturn in the ferro chrome market weighed on chrome ore, keeping the latter's prices low. Despite price-supporting sentiment among futures and spot traders, the market downturn has been difficult to overcome.

Dullness in stainless steel market persists: The steel market initially benefited from the stimulus of domestic quantitative easing policies, which drove up prices. However, the market remains weak amid a persistent supply-demand imbalance. In the face of sluggish demand, reducing supply has become the primary option for the supply side. With little expectation of significant improvement in downstream demand by the year-end, price pressures are expected to continue, ultimately impacting the mining sector. The ferro chrome market is likely to face ongoing challenges as these conditions persist.

Outlook

The ferro chrome market is expected to remain stable in the short term. Developments in steel bidding and fluctuations in the stainless steel market will likely impact ferro chrome transactions.