Chinese high carbon ferrochrome spot prices rose by Yuan
100-200/mt ($16-32/mt) over the past week to Yuan 7,200-7,300/mt (equivalent to
87-88 cents/pound), delivered with VAT Wednesday.
The increase is due to higher December bid prices by major
stainless mills and a pick-up in demand ahead of the Chinese New Year in
February next year, and also before the Chinese winter progresses and hampers logistics,
market sources said.
Shanxi Taigang Stainless Steel and Baosteel raised their
ferrochrome purchase prices by Yuan 100-150/mt for December deliveries, as
reported last week.
However, the Views differed on whether the increase could be
sustained. A Beijing-based trader reasoned prices may increase to around Yuan
7,400-7,500/mt before the Lunar New Year due to improved demand. But the
increase will likely be capped as ferrochrome smelters will increase production
in December on seeing stronger prices, a Beijing-based ferrochrome analyst
added.
Another Shanghai-based trader said the current increase is
likely to be seasonal. The latest pick-up in demand could be due to speculative
buying by traders in anticipation of further price increases, rather than real
demand from mills, she added.
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