Chinese ferro chrome prices decline as buyers abandon high offers

Ferro chrome prices in China experienced a decline of RMB 50/t ($7/t) w-o-w, with buyers showing reluctance to accept higher-priced offers. High-carbon ferro chrome prices in China were within the range of RMB 8,600-8,800/t ($1,215-1,243/t), while medium-carbon ferro chrome remained stable around RMB 14,000-14,100/t ($1,977-1,991/t). All prices are inclusive of tax and are ex-works.

The Chinese ferro chrome market witnessed a decrease in prices as buyers hesitated to accept elevated offers amid market volatility. However, market reports indicate a potential reversal as steel mills increase their demand for inventory. Limited supply of ferro chrome in the market may contribute to a potential price increase.

In the chromium ore market, transactions remained average, but tension in the Red Sea impacted trade routes, leading to a slight increase in the price of high-grade chrome ore in Turkey. Other minerals generally maintained stable prices.

Looking at the downstream market, the stainless steel market operated smoothly. Recent increases in stainless steel prices contributed to a gradual market recovery. While some companies attempted to raise prices, securing real orders at higher price levels proved challenging. Most companies opted to maintain stability while awaiting new orders.

Outlook

In the short term, the ferro chrome market is likely to be stable in the near term. However, the market is mostly waiting for guidance on the development of the steel production in the China domestic market during holidays which may influence prices.

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