China: Ferro chrome prices remain stable amid fluctuating market conditions

The ferro chrome market in China remained unchanged amidst volatility and high-carbon ferro chrome prices remained at RMB 8,850-9,050/t ($1,224-1,252/t).

Meanwhile, medium-carbon ferro chrome prices were also stable at RMB 14,200-14,300/t ($1,965-1,979/t). All prices are ex-works and include tax.

Factors influencing prices

Varying production costs: The fluctuating prices of raw materials and volatility in production costs ensured that ferro chrome prices remained stable this week. It was observed that the market stabilized after a round of increase in prices last week.

Limited acceptance of high-priced ore: The chrome ore market has operated steadily. The external futures quotation of South African chrome ore has risen again. Additionally, producers have limited acceptance of high-priced raw materials and the demand side of the chrome ore market lacks sustained support.

Weak stainless steel market: The downstream market operated amid bearish sentiments. Price support minimised due to declining nickel iron prices. There was lack of motivation for purchasing, and most transactions were mainly loose orders.

Outlook:

There are challenges faced by ferro chrome manufacturers as it seems they are dealing with high cost pressure and sluggish demand, but increased recruitment by Qingshan Steel may support stable operations in the short term.

Note: This article has been written in accordance with an agreement between CBC and BigMint.