China's ferro chrome prices remain constant amid slight market improvement

Chinese high-carbon ferro chrome (Cr: 50%) prices remained unchanged this week as the market slightly improved. Prices of high-carbon ferro chrome in China ranged between RMB 8,450-8,650/t ($1,167-$1,195/t). However, for medium carbon ferro chrome, the prices fell by RMB 200/t ($28/t) which hovered around RMB 13,500-13,600/t ($1,865-$1,879/t). All listed prices include tax and are ex-works.

The ferro chrome market operated smoothly with average trading atmosphere and the actual transactions functioned smoothly. After a month of price declines, ferro chrome prices finally came to its uniformity and prices stayed firm.
Some factories reduced production and even stopped, and the long-term contract delivery date was objected to take place. So, factories were mostly delivering long-term contract orders. This means that low-price spot resources declined, and retail prices got stronger.

On the other hand, the chrome ore market has been weak and stable lately, with an average trading atmosphere and stable trading volume. Even though the ferro chrome market did well, iron mills believe that the ore prices will fall in the future. So, they did not bought much.

Meanwhile, the stainless steel market functioned smoothly, but the trading atmosphere was average, and the actual trading volume was not ideal. Stainless steel futures stayed weak and unpredictable, but it is not affecting the market transactions much. Because of limited demand, most transactions were loose orders, and traders are in a wait and watch approach.

Outlook

The cost for ferro chrome manufacturers decreased. However, the demand for downstream stainless steel has not improved much. With the supply and demand not being balanced, the ferro chrome market is expected to be stable in the short term.

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