China's Stainless Steel Mills Lower Ferro Chrome Tender Price for Sep'18

China's Tsingshan Group, Baosteel and Taiyuan Iron & Steel (Tisco) - the major players in the global stainless steel industry, have all reduced their purchase price of high carbon Ferro Chrome by a further 200 Yuan M-o-M to set it at around 6,800 Yuan per metric tonne (equivalent to around 75.5 cents/lb) for Sep'18.

Today, Tsingshan steel has taken the lead to announce the tender price for September: 6797 rmb/50 basis (delivery to the factory, cash inclusive of tax), a drop of 200 RMB. The fall in Purchase Price is in line with market expectations as there is an abundant supply of Ferro Chrome in China and Chinese demand for importing Ferro Chrome has been on a continuous downtrend with the Yuan depreciating.

Market participants believe that Chrome ore price had been reduced even before the tender price came into being. It was offered in the market based on Ferro Chrome price coming down. Thus, Chrome ore prices will no longer dip sharply following the announcement.

At present, there is apparently no favorable news in the market for HC Ferro Chrome and price of chrome ores is faltering. Some participants predict that a turnaround could hardly appear in a short period of time. Needless to say, Ferro Chrome producers will keep their quotation close to the tender price.

According to our Chinese correspondent, Chrome Ore stock level at Chinese ports is around 3.65 million tonnes and the price of South Africa Chrome Conc. 40-42% is at USD 150/MT CIF China.