Major producers in China, Tsingshan Group and Baosteel have raised their March tender prices for HC Ferro Chrome by 100 yuan per tonne to 6,996 yuan per tonne and 7,000 yuan per tonne respectively. Following the release of tender prices for March from major Stainless Steel companies, other producers have started purchases taking them as benchmark. The overall market trading atmosphere is quite active and plants are now shipping smoothly with some plants of the Inner Mongolia region saying that there is no stock for sale.
Ferro Chrome producers in China believe that if electricity restrictions turn out to be very strict, the supply of Ferro Chrome will tighten and which will lend some support to the Ferro Chrome price and also put some pressure on the upstream Chrome ore price at the same time. Few Market producer sources claim this to be the reason as to why the leading Stainless Steel mills chose to raise their prices by 100yuan per MT.
Combination of factors such as growing effect of power limit policy in Inner Mongolia ,the supportive price of chrome ore and climbing price of new round of tenders have consolidated plants’ willingness to back up the alloy price, which is inched up and is around to RMB 6,800/50 basis per ton.
Price index of HC Ferro-Chrome 50 basis (delivered including tax) :
|
Region |
Price (RMB/MT) |
| Hebei Province | 7025 |
| Shandong Province | 7123 |
| Liaoning area | 7253 |
| Jiangsu area | 7298 |
| Sichuan area | 7366 |
| Hunan area | 7357 |
Source: SteelMint
Chinese Stainless Steel Market:
Stainless Steel prices in China surges up. In Wuxi Market, mainstream Price of Spot Hot – Rolled 316L by private mills stood at RMB20,750-20,850/ ton (thin product), and RMB21,000-21,050 / ton (thick product),with a slight increase of RMB50-100/ ton. Meanwhile, the price of hot-rolled product continued to rise, cold rolled products are pushed up to stand at RMB21, 600/ton. Oriental special steel’s guiding price rose by RMB100 / ton, which is relatively consistent with the trend. Price for Tsingshan also surged by RMB 1,000 to reach 20,800/ton as a mending measure to be in line with market level.
On the Future Outlook, it can be predicted that the prices may rise in the short run for HC Ferro-Chrome owing to the current situation. As for the later period, it is necessary to pay close attention to the changes in Supply and Demand Dynamics and the output of the plants in Inner Mongolia due to power shortages.
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