China: Ferro chrome prices remain range-bound amid cost pressures, supply dynamics

The ferro chrome market stayed marginally stable on supply-demand dynamics and market cautiousness. Prices of the various grades were:

High-carbon ferro chrome: Prices were at RMB 8,850-9,050/t ($1,217-1,244/t), down by RMB 100($14/t).

Medium-carbon ferro chrome: However, prices for medium-carbon ferro chrome inched up by RMB 50/t(7/t) w-o-w and hovered at RMB 14,100-14,300/t ($1,939-1,966/t). All prices are ex-works and include taxes.

Prices under pressure amid supply-demand dynamics: The ferro chrome market remained largely stable with a subdued trading atmosphere. Large tenders for ferro chrome steel witnessed price reductions, aligning with factory expectations but hindering market growth.

Chrome ore market dynamics: Chrome ore market showed steady operations with a normal trading atmosphere. Buoyed by strong foreign futures prices for chrome ore, the market remained robust, and spot traders continued to maintain a price supporting stance.

However, downstream sectors exhibited low acceptance of elevated prices, dampening purchasing enthusiasm and necessitating efforts to stimulate actual transactions at higher price levels amidst industrial stagnation.

Stainless steel market stays cautious amidst price volatility: The downstream stainless steel sector remained stable. Demand stayed stagnant, prompting a cautious approach among merchants and an increase in risk aversion. Transactions primarily cater to rigid demand amid a bearish outlook fuelled by declining Shanghai nickel and stainless steel prices.

Outlook:

Southern factories resumed production and new projects in the north may boost future ferro chrome supply. Weak downstream demand and high production costs suggest stable prices in the short term.

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