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Chinese ferro chrome prices remain stable amid sluggish steel bidding progress

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Ferro Chrome
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1 May 2024, 17:34 IST
Chinese ferro chrome prices remain stable amid sluggish steel bidding progress

Ferro chrome prices in China persisted uniformity w-o-w on slow progress in steel bidding. Prices of various grades were thus:

  • High-carbon ferro chrome: Prices remained unchanged at RMB 8,650-8,850/t ($1,195-1,222/t).

  • Medium-carbon ferro chrome: Prices hovered at RMB 13,700-13,800/t ($1,892-1,906/t). All prices are ex-works and include taxes.

Notable factors for the price consistency:

Slow progression in steel bidding: The ferro chrome market functioned with stability despite the average trading atmosphere and transaction performance. The sluggish progress in May's steel bidding suggests a potential for a modest decline, although some special steel mills setting prices might mitigate this decrease.

Delicate balance in demand-supply: Limited loosening in chrome ore prices coupled with the upward trend in coke costs have put significant production pressure on ferro chrome plants, which consequently affected their reluctance to adjust prices. This scenario indicates a delicate balance between supply, demand, and input costs in the market.

Declining chrome ore prices: The chrome ore spot traders faced significant inventory pressure, leading them to reduce prices and increase shipments in actual transactions. Despite some drop in external futures prices of chrome ore, the reduction hasn't been substantial.

Weak stainless steel demand: Stainless steel market faced challenges with weak demand, resulting in an average trading atmosphere and poor transaction performance. The stainless steel futures market's fluctuations and weakening indicated uncertainty and possibly decreased confidence among investors.

To stimulate demand, some manufacturers have slightly reduced spot prices. Additionally, with holidays approaching, merchants were more eager to move inventory, leading to lower prices as some with high inventories opted to sell at reduced rates. This situation reflected a growing bearish sentiment in the market as stakeholders navigate through current challenges.

Outlook:

As per current market scenario, the high cost of ferro chrome production limited manufacturers' willingness to offer discounts. Given this factor, the ferro chrome market is anticipated to remain stable in the short term. Balancing supply dynamics with demand sentiment will be critical for market participants moving forward.

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

1 May 2024, 17:34 IST

 

 

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