Chinese ferro chrome prices remain constant amid modest demand

Chinese high-carbon ferro chrome (Cr: 50%) prices stayed unchanged as there was enough inventory available with the factories. Prices of high-carbon ferro chrome in China ranged between RMB 8,550-8,750/t ($1,197-$1,225/t). However, medium carbon ferro chrome prices rose by RMB 100/t ($14/t) ranged between RMB 13,800-13,900/t ($1,932-$1,946/t). All listed prices include tax and are ex-works.

The ferro chrome market ran smoothly with average actual trades. There was less positive support for the market as there was actually too much ferro chrome available. Some companies in the south even stopped production because it was expensive and demand was also weak. But the big ferro chrome companies were still producing as usual because they have long-term customers.

The market for chrome ore, was also stable and there was some news about trades happening in the futures market. A mine in South Africa sold some chrome fine powder (40%-42%) for RMB 2,000/t ($280/t) CIF China. Even though there was more chrome ore available at the port, the price of ferro chrome did not go down. This made the traders of chrome ore feel more confident about the prices staying stable.

Meanwhile, the market for stainless steel remained steady. The prices for stainless steel in the futures market went up and down, so the people who sell stainless steel were careful about how much they buy. Most of the transactions happened with low-priced resources. The total amount of stainless steel available in the market declined, especially the 200 series and 400 series. This meant that the sellers do not have too much pressure to lower their prices.

Outlook

Overall, it is expected that the ferro chrome market would stay pretty stable in the short term.

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