Chinese Steel Mills Raise February's Ferro Chrome Tender Price on Supply Shortage

Chinese stainless-steel mills Baosteel and Tisco have raised their Ferro Chrome purchase price for February deliveries over supply concerns of the commodity.

The tender price disclosed by the Baosteel and Tisco is 7,900 Yuan and 7,700 Yuan, increased by 600 Yuan/MT each on M-o-M basis over previous month's prices.

Chinese mills took the hit quite hard after releasing their tender price in January at 7,300 Yuan (86 cents/lb) as both South African and India sellers were unwilling to deal at such lower levels. An appreciation of INR and Rand against USD had discouraged the exporters to conclude trade at the determined tender price.

Therefore, a supply shortage of Ferro Chrome prevailed in the Chinese market and spot price went up at 90 cents/lb CIF China. Hence, the stainless-steel majors were forced to revise their prices for February deliveries at 7,900 Yuan.

In the present scenario, Chinese inquiries are high as buyers are stocking their inventories before the Lunar Year festival. Moreover, the high Chrome ore prices from South Africa also supports the hike in Ferro chrome offers in the region.