In the month gone by, supported by the cost of raw materials such as chrome ore and coke, quotations for Ferro Chrome in China did not appear to fall sharply, but continued to be in a lacklustre state. And in October, despite the environmental protection norms, the domestic HC ferro chrome output in China was still above 480,000 MT, showing no delcline as was previously speculated and the market supply was clearly ample. However, since the beginning of November, the HC ferro chrome market has been lingering at a weaker level under the influence of multiple negative factors, such as, the slight downturn in tender price, sufficient in-plant stock, weak market demand, and persistently weak stainless steel market.
The latest HC ferro chrome mainstream offers are still around RMB 6,800 / 50 basis per tonne, with some companies with financial pressures quoting at RMB 6,700 / 50 basis per tonne.
In addition, the alloy index shows price of HC ferro chrome for 50basis: RMB 6,884 in Hebei; RMB 6,995 in Shandong; RMB 7,153 in Liaoning; RMB 7,168 in Jiangsu; RMB 7,255 in Sichuan; RMB 7,207 in Hunan;
For 60 basis LC ferro chrome (delivered,cash inc.tax): RMB 13,185 in Hebei Province ; RMB 13,263 in Shandong area ;RMB 13,403 in Liaoning area ; RMB 13,431 in Jiangsu area ; RMB 13,514 in Sichuan area.
Steelmint learned that market participants in China are of varied opinions. Some optimists said that with the acceleration of the winter storage demand in the coming days, the market demand is expected to improve, and by then the HC ferro chrome market will stabilize. However, most also said that the market currently is clearly dominant by adverse news, and it is difficult to have obvious positive information support and it is necessary to guard against further price declines.
Chrome ore Continues to fall
After a short period of smooth operation, sea-borne chrome ore offers have declined as shown in the following table:
| Global Chrome Ore Offers | ||||
| Product | Grade | Price | Up/down | Unit(CIF) |
| RSA cr ore | 42-44% concs | 185-190 | ↓5 | $/dmt |
| 40-42% concs | 165-170 | ↓2 | $/dmt | |
| 36-38% lump | 165-170 | ↓5 | $/dmt | |
| Pakistan cr ore | 40-42% lump | 220-225 | — | $/dmt |
| Oman cr ore | 30-32% lump | 115-120 | — | $/dmt |
| Turkey cr ore | 46-48% concs | 235-240 | — | $/dmt |
| 40-42% lump | 220-225 | — | $/dmt | |
| Iran cr ore | 40-42% lump | 190-200 | — | $/dmt |
| Albania cr ore | 40-42% lump | 245-250 | — | $/dmt |
| 38-40% lump | 225-230 | — | $/dmt | |
| Madagascar cr ore | 46-48% concs | 210-220 | — | $/dmt |
| 38-40% lump | 190-200 | — | $/dmt | |
| Zimbabwe cr ore | 48-50% concs | 240-245 | — | $/dmt |
Stainless Steel Down RMB 50-100/MT
Halfway through November, the wave of price increases at the beginning of the month has long since disappeared, and a new round of price falls have begun.
The mainstream offers for 201 cold-rolled series slided down to RMB 8,650~8,700 / tonne, with the lowest offer heard at RMB 8,600; and the same product from Angang Lianzhong without lined paper can go to RMB 8,550 / tonne, and HRC mainstream offers are at RMB 8,450 / ton, both the cold and hot rolled products saw a drop of RMB 50~100/tonne from yesterday. Meanwhile, in Foshan market, 201 cold rolled coils has already reduced to RMB 8,600 / tonne yesterday.
Future Outlook
Looking at the trend in the short term, the HC ferro chrome market may continue to run weakly. But if the price falls further to touch the production cost line, then plant shutdown can not be ruled out. Therefore, it is necessary to pay close attention to the plant operation rates and the changes in supply and demand fundamentals.
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