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China: Ferro Chrome prices remain stable on modest downstream demand and tight supply

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Ferro Chrome

BigMint Bureau

670 Reads

8 Sep 2020, 17:29 IST

China: Ferro Chrome prices remain stable on modest downstream demand and tight supply

Chinese Ferro chrome prices maintained a firm position on tight supply and offers were around RMB 5,950-6,000/t for HC 50% Cr.

Indicative prices for HC 50% according to the regions (tax inclusive, delivered) are given below:
Hebei province at RMB 6145, up 10;
Shandong province at RMB 6,244, down 10;
Liaoning province at RMB 6,353, up 20;
Jiangsu province at RMB 6,421, up 10;
Sichuan province at RMB 6,396, flat,
Hunan province at RMB 6,480, flat;

Major stainless steel mills such as Tsingshan group, Tisco, Baowu's Desheng plant, Jisco have announced their Sep' 20 tender prices for HC ferro chrome which are all flat m-o-m.

As the situation stands, overseas supply is on the rise, and domestic supply is on the decline but the overall supply is still adequate to meet the demand.

Regardless of the continuously rising on stainless steel price, HC ferro chrome price is yet to keep up. It is expected that the market in the short term may remain largely stable.

Tenders updates:

The price of Zimbabwe chrome concentrates 48-50% ticked up by $5/dmtu. The chrome ore prices are projected to pick up owing to the firm willingness to prop up alloy prices by producers and their improved buying enquiries. The sporadic price hike by some overseas chrome ore suppliers may light up the spot market.

Chrome prices

From the feedback of sellers, sentiments on uptrend still persisted. Specifically, the offer on untrimmed-edge 304 four-feet cold-rolled products stood at RMB14,600-15,000 in Wuxi and Foshan markets with transactions mostly seen at RMB14,600-14,800; With the undercut sales to cash in and subsided momentum on nickel price, it is expected that SS price in the short term may remain to fluctuate within reasonable levels..

Summary:
In short term, HC ferro chrome price will remain firm on supportive chrome ore market, and sentiments of propping up price and holding back offers are perceptible. On the whole, no drastic changes in the market conditions is expected.