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Chinese ferro chrome prices remain largely stable amid weak demand

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Ferro Chrome

BigMint Bureau

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21 Aug 2024, 18:44 IST

Chinese ferro chrome prices remain largely stable amid weak demand

CBC: The ferrochrome market remained largely stable, with poor demand due to the off-season. Inquiries and purchases are limited, and raw material prices, including chromium lump ore, have also fallen slightly. The recent fifth round of coke price increase has eased some cost pressure. Despite these factors, the market is still heavily impacted by sluggish demand, keeping prices temporarily stable.

Prices of various grades:

Firm high-carbon ferro chrome prices: Prices were largely consistent but slightly decreased by RMB 50/tonne (t) ($7/t) w-o-w, settling at RMB 8,400-8,700/t ($1,177-1,219/t).

Medium-carbon ferro chrome prices inch down: Prices of medium-carbon ferro chrome inched down by RMB 100/t(14/t) w-o-w to RMB 13,200-13,400/t ($1,850-1,878/t). All prices are ex-works and include taxes.

Lower raw material prices: The chromium ore market, essential for ferro chrome is weak, with slight price declines. Prices of mainstream chrome lump ore and Zimbabwean chrome concentrate have dropped again. Due to market pressure, some miners have increased shipments at lower prices, causing transaction prices to decline slowly. However, the overall decrease is gradual, with ongoing standoffs in the industrial chain.

Poor stainless steel market: The downstream stainless steel market remained sluggish, with a lukewarm trading atmosphere and stagnant demand. Downstream merchants are adopting a wait-and-see approach, increasing risk aversion. Transactions are mostly driven by rigid demand, with steel procurement weakening.

Cautious buying: The ferro chrome market lacked new demand drivers, and merchants are bearish on future prospects, leading to postponed purchases. Traders noted that the current market is in a bargaining phase, where price stability is crucial for maintaining confidence.

Outlook

Prices are expected to decline in the near term due to ongoing market downturns, increased factory losses, and pressure from steel mills, which are intensifying the push for further price reductions.