China: Ferro chrome prices remain stable amid balanced supply-demand fundamentals
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The ferro chrome market remained steady w-o-w, with prices for high and medium carbon material remaining largely stable, with just a slight decline of RMB 100/t ($14/t) observed.
Prices
High-carbon ferro chrome: Prices were at RMB 7,800-8,200/t ($1,090-1,146/t).
Medium-carbon ferro chrome: Prices stood at RMB 12,700-12,900/t ($1,774-1,802/t) exw, including taxes.
Factors driving market
Balanced supply-demand dynamics: Recently, the supply and demand of high-carbon ferro chrome have been balanced, as most steel mills have fulfilled their purchasing needs and producers have completed their orders. However, both demand and raw material conditions were not favourable, leading to a steady focus on price negotiations.
Chrome ore market steady, oversupply concerns persist: The chrome ore market has remained steady w-o-w, with purchases driven primarily by demand. Oversupply issues persist, prompting downstream steel mills to maintain pressure on prices, passing these reductions upstream.
Despite chrome ore prices being relatively low this year, the industry sentiment remains bearish regarding future market prospects. Concerns about continued oversupply and weak demand contribute to this cautious outlook among market participants.
Stainless steel market weakness continues: The stainless steel market initially benefited from domestic quantitative easing policies, leading to a rise in prices. However, fundamental weaknesses persist due to ongoing supply and demand imbalances in the downstream market.
With demand remaining sluggish, reducing supply appears to be the only viable option for producers. Expectations for downstream demand improvement by year-end are low, suggesting continued price pressure that will ultimately affect the mining sector.
Outlook
Stainless steel mills' high-chrome bidding has remained slow, with caution prevailing among traders. Uncertainty in demand persists, reinforcing the need to monitor steel bidding and stainless steel market fluctuations. Stability in the ferro chrome market is anticipated in the near term.
