Japan: Ferro chrome prices drop over 10% q-o-q in Q3CY23

The quarterly price of high-carbon (HC) ferro chrome, a key ingredient used to make stainless steel and special steels, will be lower by 11% to $1.59 (pure chrome price, arrival basis) in Japan for the third quarter of 2023 (July-September) compared to April-June.

However, this was the first decline in a year, and there is still upward pressure on ferro chrome supplies in South Africa and other nations, as prices continue to rise as a result of rising electricity costs. Thus, many market participants opine that the price correction is temporary.

In South Africa, electricity prices rose by about 19% in April. The earnings situation of ferro chrome manufacturers is becoming increasingly severe. Therefore, if demand recovers, there is a strong possibility that the pressure to raise prices will increase again.

Major producers like Nippon Steel Stainless Co., Ltd. have agreed to cut costs with many ferro chrome producers. Also, stainless steel manufacturers are expected to follow suit.

Global impact on ferro chrome prices

Contrary to expectations, European stainless steel manufacturers' demand recovery for ferro chrome lagged in the April-June period. Similarly, the Chinese market rebound was delayed, and spot prices noticeably weakened due to drop in demand. These trends have impacted Japanese prices.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.