Chinese ferro chrome prices remain stable, outlook likely

Ferro chrome prices in China stayed firm as traders tried to hold back offers in the market resulted in the less trade activities. Prices of high-carbon ferro chrome in China ranged between RMB 8,650-8,850/t ($1,213-$1,241/t). Meanwhile, medium-carbon ferro chrome hovered at around RMB 14,000-14,100/t ($1,963-$1,977/t). All listed prices include tax and are ex-works.

In order to keep the market prices firm, traders demanded less of ferro chrome, which made prices moderate this week.

The market for chrome ore remained constant in China. Prices were rangebound due to the continual supply from South Africa. However, as the cost of transporting Turkish chrome ore (46-48%) increased and ranged between RMB 69-70/dmtu ($814-$825/t), prices rose somewhat.

On the other hand, the stainless steel market performed modestly, although demand did not improve significantly as it was anticipated by the market participants. The costs were moderate; some requirements may have opportunity for negotiation, but overall, the prices remained stable.

Outlook

The rise in the price of chrome ore as a raw material following the fall in coke prices has countered the decrease in ferro chrome production costs. Furthermore, manufacturers in the southern region curtailed and paused production more in December, resulting in slightly tighter local market supplies. The ferro chrome market is likely to be robust and stable in the immediate term.

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