Though the support from chrome ore price is winding down, the continuous rise in met coke prices coupled with modest ferro chrome availability in the market, ferro chrome plants are still holding firm on alloy price.
Tsingshan group reduced its Dec ’20 tender price for HC ferro chrome to RMB 5797/t ($881.40/t) delivered including tax, down RMB 100 m-o-m. Currently, the mainstream price of HC ferro chrome is stable due to limited availability of ferro chrome in the market following the power supply limit from earlier this week and high cost of met coke.
Following the decline in Tsingshan’s tender price for Dec ’20, market participants are looking at the market with somewhat eroded confidence, as the decline in domestic prices may also soften overseas alloy supplier’s stance regarding prices.
Currently, the price remains firm, with mainstream offer ranging at RMB 5,900-6000/t ($897-912/t); price (delivered including tax) for HC ferro chrome 50pc in Hebei area being at RMB 6,115 ($930/t), Shandong area at RMB 6,223 ($946/t), Liaoning area at RMB 6,343 ($ 964/t), Jiangsu area at RMB 6,389 ($ 971/t); Sichuan area at RMB 6,396 ($972.48/t) , Hunan area at RMB 6,470 ($984/t);
Chrome ore weakened
Following the price decline on South African origin chrome ore both in Chinese portside and South African offers. Some major alloy plants in North China slowed down inventory build-up, and order for future goods are on the decline. Alloy plants think the tender prices by major stainless steel mills are expected to go down given the weakening stainless steel market, thus slowed down purchase of chrome ores, which combined with liquidity constraint amongst some traders near year-end, resulted in price reduction of RMB 0.5-1/dmtu on chrome ore spot of South African origin.
Stainless steel market
Though it seems the Stainless steel market is stable, some sales are concluded at lower prices. The 304 four foot cold-rolled stainless steel are mainly offered at RMB 12,800-13,400 ($1,946-2,037/t) for raw-edged coils in Wuxi markets and Foshan markets; the product from private producers of main producing areas was mainly offered at RMB 12,900 ($1,961/t) or so, while some traders are selling at lower prices for large volumes hoping to get more liquidity.
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