Chinese ferro chrome prices inch down w-o-w on cautious market sentiment

CBC: The ferro chrome market stayed dull this week on poor demand. The supply-demand mismatch has led to increased bidding by steel mills and procurement prices, yet actual transaction prices have continued to fall.

Prices of various grades:

High-carbon ferro chrome: Prices inched down by RMB 100/t ($14/t) to settle at RMB 8,750-8,950/t ($1,206-1,233/t), unchanged w-o-w.

Medium-carbon ferro chrome: However, prices for medium-carbon ferro chrome fell by RMB 100/t(14/t) w-o-w to RMB 13,700-13,900/t ($1,888-1,915/t). All prices are ex-works and include taxes.

Stable chrome ore prices: The chrome ore market remained stable with a generally steady trading atmosphere and no significant fluctuations. Recent trends indicated relative calmness. Despite miners' firm quotations, downstream buyers were resistant to high prices, focusing mainly on necessary purchases.

Dull stainless steel market: The downstream stainless steel market remained sluggish on stagnant demand. Downstream traders showed a wait-and-see attitude and increased risk aversion, focusing mainly on essential transactions. However, most of the transactions are based on rigid demand.

Declines in Shanghai nickel and stainless steel prices have led to bearish market expectations and postponed purchases. Traders note that the current market is in a bargaining phase, with price stability being crucial for maintaining market confidence.

Outlook

The ferro chrome market faces weak demand and high production costs, preventing significant price cuts. Poor off-season performance and declining raw material costs weaken market support and point to a continued risk of slight downtrend in prices in the near term.

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