China: Ferro chrome prices mostly stable w-o-w on supply-demand imbalances

CBC: The ferro chrome market remained generally stable w-o-w, with prices remaining unchanged for the high carbon variety, while medium carbon inched down by RMB 100/t ($14/t).

On the supply side, southern steel mills gradually scaled back operations. On the demand side, steel production remained below expectations, resulting in a sluggish market atmosphere. The stainless steel industry's demand stayed weak, and overall, the market is in a wait-and-watch phase, with participants cautious about future trends.

Prices

High-carbon ferro chrome: Prices were unchanged w-o-w at RMB 6,900-7,300/t ($941-996/t).

Medium-carbon ferro chrome: Prices inched down by RMB 100/t ($14/t) w-o-w to RMB 11,700-11,900/t ($1,596-1,623/t) exw, including taxes.

Factors driving market

Diminishing chrome ore prices: The chrome ore market experienced weakness this week, with domestic spot prices fluctuating within a narrow range. Foreign futures prices for chrome ore from key producers such as Turkey, Albania, Iran, Zimbabwe, and Pakistan were also subdued. The persistent weakness in the downstream ferro chrome market continues to exert pressure on chrome ore prices, keeping them low. Despite some price-supporting sentiment from futures and spot traders, the overall market downturn is difficult to reverse. The pressure of capital turnover and concerns over future price declines have led traders to sell at a discount, further dampening market conditions.

Dull stainless steel market: The underlying issue of supply-demand imbalance remains unresolved. With weak demand persisting, the only viable option for the supply side is to reduce output. Currently, there is no significant improvement expected in downstream demand, meaning price pressure will continue. This ongoing strain will ultimately be passed down to the mining sector, where it will further impact prices and market conditions.

Outlook

Steel mill production and bidding remained sluggish, with traders adopting a cautious approach, waiting for lower prices. Ferro chrome and chrome ore inventories were stable, having minimal impact on chromium products. In the short term, the ferro chrome market is expected to experience small adjustments.