China's Baosteel and Tsingshan Group Lower Ferro Chrome Tender Price for Nov'17

China's Baosteel and Tsingshan, two of the major players in the global stainless steel industry, have lowered their high carbon Ferro Chrome purchase price by RMB 500 to around Yuan 7,900/MT (equivalent to 92 cents/lb) and Yuan 7,896/MT respectively for November deliveries, according to industry sources.

The lower tender prices can be attributed to higher Chinese domestic production and increased South African supplies to China. Supply from South Africa is increasing as the country has come out of the expensive winter power tariff. Moreover, increased imports of charged chrome by China have enabled them to produce sufficient amount to fulfill their requirement. Hence, decreasing dependency of China on imported Ferro Chrome has encouraged the buyers to cut their purchase prices.

Adding to the same, an initiation by the Chinese govt. to curb the pollution during winter can also be attributed towards diminishing demand for Ferro Chrome. Few Stainless mills are expected to go for maintenance in November while few Stainless mills have also been ordered to reduce output to curb air pollution.

SteelMint assessed that Ferro Chrome prices are expected to be under pressure.