High carbon ferro chrome market is largely stable now. The offers are mostly stable or firm on low inventory at plants, induced by capped power usage in producing areas, stable chrome ore prices, and reduced output in south due to high costs.
Currently, the mainstream price of ferro chrome (HC 50%) is around RMB 6,000/t ($914.22/t). In terms of transactions, the limited available supply in the market along with the unclear direction of stainless steel mill tender prices led to the coexistence of rigid demand and hesitant buying sentiment. Specifically, price (delivered including tax) in Hebei area is RMB 6,195 ($943.93), Shandong area at RMB 6,283 ($957.34), Liaoning area at RMB 6,403 (975.62), Jiangsu area at RMB 6,449 ($982.63); Sichuan area at RMB 6,406 ($976.08), Hunan area at RMB 6,460 ($984.31);
Chrome ore market remains stable
On one hand, the alloy plants tend to hold down chrome ore price due to the downward trend of tender price in last round and the rocking development of stainless steel. On the other hand, the forward chrome ore prices stay firm and the spot traders are reluctant to concede in relatively get-by trading sentiment. On the whole, the chrome ore price at present is stable but market sentiment in the short term tends to be hesitant;
Outlook:
Ferro chrome price is propped up by costs and limited production and market participants are shifting focus on the new round of tender prices resulting in modest willingness to take positions and market transactions are actually tepid. It is expected that HC ferro chrome market in the short term may remain in consolidation.
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