Chinese Stainless-Steel Mills Raise Ferro Chrome Purchase Price for July

Tsingshan Group, Baosteel, and TISCO all raised their Ferro Chrome purchase price for July by 700 Yuan/MT.

A supply shortage of Ferro Chrome in China due to production cuts on the backdrop of pollution-curbing policies has created a supply shortage. Moreover, the UG2 chrome ore prices have also edged up and supported higher Ferro Chrome prices.

Chinese major steel mills have raised the Ferro Chrome purchase tender price to around Yuan 7,800/MT which amounts to approx. 89 cents/lb. However, spot prices are already higher than the aforementioned level.

Indian Ferro Chrome producers claimed to have concluded deals at 92-93 cents/lb CIF China, which is still around 3-4 cents/lb higher than the tender price for July.

In the Chinese domestic market, Ferro Chrome supply had been low since its government bodies cut production of Ferro Alloys in various provinces due to environmental concerns. Hence, Chinese buyers have been more dependent on imported alloys, creating a bullish sentiment in the market.