China: Ferro chrome prices largely stable w-o-w despite weak demand

CBC: China's ferro chrome market reflected stability w-o-w, with prices of high-carbon ferro chrome inching down by RMB 200/t ($28/t) while the medium-carbon grade was unchanged.

The supply and demand for high carbon ferro chrome was balanced, as most steel mills have completed their purchases and ferro chrome producers have fulfilled their orders. Despite some challenges on the demand and raw material sides, market conditions remain steady, leading to a stable bargaining centre of gravity.

Prices

High-carbon ferro chrome: Prices were largely stable w-o-w at RMB 7,600-8,000/t ($1,049-1,105/t) edging down by RMB 200/t ($28/t).

Medium-carbon ferro chrome: Prices remained unchanged at RMB 12,600-12,800/t ($1,740-1,767/t) exw, including taxes.

Factors driving market

Poor raw material demand: The chrome ore market stayed weak, with domestic spot prices declining across the board. Prices of chrome ore in Turkiye, Albania, Iran, Zimbabwe, and Pakistan have also fallen.

The sluggish downstream ferro chrome market continues to exert pressure on chrome ore prices, contributing to a downward trend. While futures and spot traders express some price-supporting sentiment, the overall market downturn is challenging to mitigate.

Steel market faces challenges: Benefiting from the recent stimulus policy , the steel market rose initially. But the basic fundamentals behind the weakness cannot be strengthened soon. The imbalance between supply and demand still exists and reducing supply is the only option for suppliers.

It is expected that there will be no significant improvement in downstream demand at the end of the year, and the price pressure will continue, which will eventually be passed on to the mining side.

Outlook

The ferro chrome market is expected to remain stable in the near term, as steel mills' high-chrome bidding progresses slowly. Cautious traders await clearer demand signals, while developments in steel bidding and stainless steel market fluctuations will significantly influence overall sentiments.