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China: Ferro chrome prices remain stable amid weak demand

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Silico Manganese
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13 Nov 2024, 15:10 IST
China: Ferro chrome prices remain stable amid weak demand

  • Steel mills stay away, having finalised purchases



  • Chrome ore market firm amid need-based buying



CBC: China's ferro chrome market remained stable w-o-w, with prices of high-carbon ferro chrome unchanged and the medium-carbon grade inching down by RMB 100/t ($14/t). Demand was lacklustre, as most steel mills have finalised their purchases and were absent from the market. Suppliers also stayed away, having recently fulfilled their orders.

Prices

High-carbon ferro chrome: Prices were stable w-o-w at RMB 7,800-8,200/t ($1,080-1,136/t).

Medium-carbon ferro chrome: Prices stood at RMB 12,600-12,800/t ($1,745-1,773/t) exw, including taxes, down by RMB 100/t ($14/t).

Factors driving market

Need-based purchases for chrome ore: The chrome ore market was stable w-o-w, but purchases were primarily need-based. Oversupply remains a concern, and as downstream steel mills have continued to push prices lower due to weak demand, upstream chrome ore suppliers are under pressure.

Given that chrome ore prices have been relatively low this year, the industry maintains a bearish outlook for the future market.

Lacklustre downstream demand: The stainless steel market initially rose due to domestic quantitative easing policies but eventually trended down due to the ongoing supply-demand imbalance.

It is expected that stainless steel demand will not see significant improvements by year-end, and price pressures will continue. In this scenario, the only viable solution for the supply side is to reduce output. This ongoing strain will likely be transmitted back to the mining sector, impacting the overall market dynamics.

Outlook

Ferro chrome prices might be firm in the near term, as the stainless steel market is currently cautious due to uncertain demand. Traders are hesitant to stockpile, and the market's future is dependent on steel bidding and broader market fluctuations.

13 Nov 2024, 15:10 IST

 

 

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