China's Ferro chrome prices exhibit stability amidst post-holiday recovery

The Chinese ferro chrome market displayed stability following the Spring Festival holiday, characterized by:

• Unchanged prices: High-carbon ferro chrome prices remained within the range of RMB 8,600-8,800/t ($1,195-1,222/t), while medium-carbon prices experienced a minor decline of RMB 100/t ($14/t) to settle around RMB 14,300-14,400/t ($1,986-2,000/t). All prices are inclusive of tax and ex-works.
  
  
• Average trading activity: Trading activity remained moderate, reflecting a gradual recovery post-holiday.
  
  
• Improving supply to meet demand: The overall supply-demand balance hasn't significantly improved, manufacturers demonstrated increased willingness to ship after the holiday break. This suggests potential momentum for future market activity. High raw material and transportation costs continue to challenge manufacturers, impacting their pricing strategies. As logistics and market participants return to normalcy, trading activity is expected to gradually pick up in the coming weeks.
  
  
• Chrome ore market dynamics: The chrome ore market exhibits complex dynamics influenced by factors such as production resumptions and price support from traders. Close monitoring of these factors is crucial for informed decision-making.
  
  
• Stainless steel market: The downstream stainless steel market functioned smoothly despite temporary production stoppages or reductions by some plants due to the holiday. This uninterrupted operation suggests sufficient high-carbon ferro chrome availability.
  
  

Outlook

The Spring Festival holiday created short-term production difficulties, although short-term stability is anticipated in the Chinese ferro chrome market. Increased supply will also result from the progressive integration of additional high-carbon ferro chrome production capacity

However, temporary manufacturing snags caused by the holidays, current inventory levels seem sufficient to fulfill demand.

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