Chinese ferro chrome prices stable w-o-w on supported trades

The prices for high-carbon ferro chrome remained unchanged w-o-w at around RMB 9,050-9,250/t ($1,240-$1,267/t) including tax. For medium-carbon ferro chrome the prices stayed at around RMB 14,900 to 15,000/t ($2042-$2055/t) including tax with an average price of RMB 14,950/t ($2048/t), prices were uninterrupted this week. The ferro chrome market witnessed flat trading volume.

In September, stainless steel plants needed a lot of ferro chrome, so they were active in booking ferro chrome. Some steel plants even entered the market to buy, and there were a lot of inquiries and price checks. However, some steel mills recently offered lower prices.

The shipping efficiency at the Maputo port in Mozambique, South Africa went full, which means that there won't be many more shipments of chrome ore from South Africa in the near future. Also, the recent slight decline in the exchange rate has made the price difference between chrome ore futures and spot prices bigger.

However, the stainless steel market stayed strong with high demand resulted in price hike. The high prices of the materials used to make stainless steel, like ferronickel and ferrochromium, have made it more expensive to produce stainless steel.

Outlook

In September, steel mills offered higher prices, but it wasn't as much as traders were hoping for. So, it is anticipated that the ferro chrome market will become more stable in the short-term.

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