Chinese ferro chrome prices consistent on slow stainless steel demand
...
Ferro chrome prices in China remained stable amid slow stainless steel demand. Prices for various grades were thus:
High-carbon ferro chrome: Prices remained unchanged at RMB 8,650-8,850/t ($1,194-1,221/t).
Medium-carbon ferro chrome: Prices hovered at RMB 13,700-13,800/t ($1,891-1,905/t), declining by RMB 100/t ($14/t). All prices are ex-works and include taxes.
Notable driving factors
Declining market demand: Softening market demand was reflected in decreased centralized procurement and downstream inquiries. Production or pricing adjustments are essential for ferro chrome plants to navigate these dynamics effectively and maintain competitiveness amid shifting market conditions.
Dull raw material prices: Chrome ore spot traders faced significant inventory pressure, leading them to reduce prices and accelerate shipments to alleviate this pressure.
However, the recent implementation of the first round of coke price increase indicated rising costs for ferro chrome production. Market expectations of a potential second round of coke price increase before the holidays could further elevate raw material costs for ferro chrome plants. This factor might add some support to ferro chrome prices, as producers seek to offset these increased input costs.
Stable steel bids: The steel plants' bidding prices in April remained largely stable. While Qingshan's hike of RMB 500/t ($69/t) in the April steel bidding price has made waves, other special steel plants have not been able to match this offer. This indicated a more conservative approach from other players in the market.
Outlook
Overall, it appears that market participants are adjusting their strategies in response to recent developments, aiming for a more balanced and stable operating environment.
However, continued monitoring of market dynamics will be essential to gauge any shifts in the near future.
Note: This article has been written in accordance with an agreement between CBC and BigMint.
