China: Ferro chrome prices unmoved, rising stocks may weigh on offers

Ferro chrome prices in China remained unchanged this week on enough stock availability post CNY (Chinese New Year) holidays. High-carbon ferro chrome prices held within the range of RMB 8,600-8,800/t ($1,196-1,238/t), while medium-carbon ferro chrome rose slightly by RMB 300/t ($42/t) hovered at around RMB 14,300-14,400/t ($1,989-2,003/t). These prices, inclusive of tax and ex-works, showed no significant fluctuations.

The ferro chrome market remained stalemate with prices being sturdy this week. The trading atmosphere and the actual transactions were average. Some factories had extra inventory from the recent holiday, so they sold at discounted prices. Keeping an eye on how things progress in the market is suggested.

Meanwhile, chrome ore market stayed stable with marginal fluctuations, but the situation in the Red Sea remained a point of concern. With high international sea freight prices, chrome ore merchants tried to keep prices up. Downstream manufacturers demanded less of chrome ore.

Moving ahead the stainless steel market remained uncertain, as some merchants were still on holiday. There were fewer low-price resources available, so merchants stocked up cautiously. There were more inquiries than actual orders, so the overall transactions remained stable.

Outlook

The market is anticipated to stay stable in the near future as holidays just got over, so it will take some time to have better clarity on prices.

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