China: Ferro Chrome Trade Activity Hit by the Down Trending Market
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The price of HC Ferro Chrome prices remain unchanged. Manufacturers have a strong willingness to close transactions, but due to the strong bearish outlook in the market, the downward adjustment of the tender price by steel mills next month has become an untold consensus. Due to the lack of price guidance, Ferro Chrome retail market, though not short of inquiries, is still mainly featured with transactions on low-costs resources. Most of the counter-offer prices are too low, making it difficult to strike deals. The price of Ferro Chrome moves ahead in weak fluctuation.
The general transaction price of general silicon HC Ferro Chrome (50 basis ex-factory including tax) southwest China RMB 6,050-6,100(USD 860-867); northwest China RMB 5,900-6,050 (USD 839-860); northeast China RMB 6,300-6,400 (USD895-910); east China RMB 6,250-6,300 (USD 888-895); Central China RMB 6,100-6,200 (USD867-881); North China RMB 5,900-5,950 (USD838-846). Mainstream price of low-silicon (si? 1.5) HC Ferro Chrome in North China is at RMB 6,300-6,450 (USD 895-917) /50basis per ton including tax; The same in South is at RMB6,650-6,750 (USD 945-959) / 50 basis per ton; mainstream price by distributors is at RMB6,450-6,800 (USD 918-966) / 50 basis per ton.
At present, the mainstream transactional price of HC Ferro Chrome by oversea offers: South Africa 0.71-0.72 USD / pound chromium, India 0.68-0.69 USD / pound chromium, Kazakhstan 0.77-0.78 USD / pound chromium; The spot transaction price of imported HC Ferro Chrome: South African mainstream at RMB6,300-6,350 / 50 basis per ton, India mainstream at RMB6,200-6,250 / 50 basis per ton, Kazakhstan mainstream at RMB7,500-7,600 / 50 basis per ton.
Today, the price of LC Ferro Chrome is again slipped by RMB 200/ 60 basis per ton, to see the mainstream factory price of c0.25 stand at RMB 9,700-10,100 / 60 base tons; mainstream factory price of ultra-low carbon Ferro Chrome c0.10 is reported at RMB9,900-10,300 / 60 basis per ton; mainstream factory price of Ferro Chrome c0.06 is at RMB 10,300-10,600 / 60 basis tons (ex-factory, cash, including tax ). So far, the decline of low-carbon Ferro Chrome has exceeded RMB800 / 60 basis per ton this month. Once this round of price is confirmed, it broke the record of the lowest price in early 2016.
From the cost perspective, the chrome ore spot price at ports is lowered by RMB3 / ton, the price of Ferro Chrome alloy is reduced by RMB350/ ton, which should cause a reduction of RMB460 to the low and ultra-low carbon Ferro Chrome smelting cost on 60 basis per ton. However, the actual decline in alloy prices far exceeded the cost decline, deepening the already loss-suffering situation. Due to the sluggish market for low-carbon Ferro Chrome procurement, most of the factories hold high-level stocks, but some factories have chosen to stop offers due to unbearable losses. Most manufacturers prefer to reduce production so as to consume inventory, rather than sell at a loss. Therefore, the number of factories that prefer to cut production or shutdown is on the rise and the output of low/ultra-lowFerro Chrome in December is projected to decline.
On the other hand, the demand for Ferro Chrome will be weakened in the off-season of the steel industry in December and the huge Ferro Chrome inventory will take time to be consumed. Therefore, some participants in the industry hope that the market will stop falling in December and that the market will be warmed up in the first quarter of next year.
