China: Ferro chrome prices remain stable amid modest demand, high production cost

Ferro chrome prices in China remained stable on higher cost of production and firm market demand. Prices of various grades:

High-carbon ferro chrome: Prices were at RMB 8,850-9,050/t ($1,222-1,249/t).

Medium-carbon ferro chrome: Prices hovered at RMB 13,900-14,000/t ($1,919-1,933/t), inching up by RMB 100/t ($14/t). All prices are ex-works and include taxes.

Average trading atmosphere: The market trading atmosphere stayed moderate, with large-scale steel tenders for June maintaining prices similar to May. This aligned with factory expectations but suppressed further market growth.

Stable chrome ore market: The raw material market for chrome ore was also stable, driven by strong futures performance and a general high price-supporting sentiment among spot traders. Nevertheless, downstream acceptance of these high prices remained low, indicating a challenging high-price transaction environment.

Flat stainless steel market: In the downstream market, the stainless steel sector showed no significant changes, with a moderate trading atmosphere. Production continued, but purchasing enthusiasm was low due to limited margins, resulting in cautious market sentiment.

Outlook

The current lukewarm stocking sentiment among downstream steel mills indicated that market transactions will primarily be driven by rigid demand. Although manufacturers face high costs, they are reluctant to lower prices further. Consequently, the ferro chrome market is anticipated to remain stable in the short term.

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