China: Ferro chrome prices hold steady despite weak demand, cost adjustments
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CBC: The ferro chrome market has stabilized following a recent decline in high carbon ferro chrome prices. Downstream demand remained weak, with limited buying interest. Stable raw material costs and the initiation of the fifth round of coke price adjustments have slightly eased cost pressures. Despite this, the market remains heavily influenced by subdued demand, keeping prices steady for now.
Prices of various grades:
Firm high-carbon ferro chrome prices: Prices were largely stable with slight correction by RMB 100/t ($14/t) w-o-w, settling at RMB 8,300-8,600/t ($1,164-1,206/t).
Consistent medium-carbon ferro chrome prices: Prices of medium-carbon ferro chrome were unchanged w-o-w to RMB 13,200-13,400/t ($1,852-1,880/t). All prices are ex-works and include taxes.
Need based buying of raw material: The chrome ore market is stable today, with chrome lump ore prices steadying after a slight drop, and chrome concentrate prices remaining stable. The market trend remained weak, as the ferro chrome market faces oversupply. Excess capacity in ferro chrome plants is slowly being absorbed, and demand for chrome ore has not significantly improved, with purchases driven primarily by essential needs.
Weak stainless steel market: The downstream stainless steel market remains sluggish, with a lackluster trading atmosphere and no signs of improvement in terminal demand. Downstream merchants are adopted a wait-and-see approach, with increased risk aversion and transactions primarily driven by rigid demand.
Steel recruitment has weakened, and the ferro chrome market lacks new demand drivers. Merchants are bearish on the future, delaying purchases. Traders note that price stability is key to maintaining market confidence during this bargaining phase.
Outlook
Given the prevailing market conditions, the short-term outlook for ferrochrome remains bleak. Prices are likely to continue facing downward pressure as manufacturers struggle to navigate the challenging environment. The industry will need to closely monitor market dynamics and adapt strategies to mitigate the impact of these headwinds.
