China's ferro chrome prices stable amid limited trade

The ferro chrome market has not seen any major fluctuation this week, China's high-carbon ferro chrome (Cr: 50%; C: 6-8%) market is stable, currently at RMB 8,550-8,750/t ($1183-1210/t). The market is running smoothly, but the trading volume is not too high. Prices set by ferro chrome producers remain stable because of decent margins.

But, due to the decrease in demand for stainless steel, ferro chrome demand is under pressure.

On the other hand, sellers of chrome ore are holding onto their supply and not selling at a lower price. So there is not much happening in terms of transactions.

The stainless steel market has been weak and unpredictable lately. Futures contracts have been dropping, so most traders are just waiting and not making any move. There are not many inquiries or actual orders in the market right now. Even though some sellers are willing to make a small profit by lowering their prices, not many people are interested in buying.

Outlook:

The ferro chrome market is running smoothly, but there are not many actual transactions happening. Manufacturers are not eager to buy more. On the other hand, the stainless steel market is weak, and people are edgy about what will happen next. The ferro chrome market may remain weak but stable for a while, however, raw material price movements and the demand for ferro chrome are critical factors to watch out for.

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