CBC: The Chinese ferro chrome market has experienced a downtrend this week, despite increased bidding and procurement activity from steel mills. Actual transaction prices have declined, indicating a supply-demand imbalance. This discrepancy between bidding intentions and realised prices suggested a cautious market sentiment and potential oversupply concerns.
Prices of various grades:
High-carbon ferro chrome: Prices were down by RMB 100/t ($14/t) w-o-w to settle at RMB 8,600-9,000/t ($1,182-1,237/t).
Medium-carbon ferro chrome: Meanwhile, prices of medium-carbon ferro chrome fell by RMB 200/t(27/t) w-o-w to RMB 13,500-13,700/t ($1,855-1,883/t). All prices are ex-works and include taxes.
Weak chrome ore market: The chrome ore market remained weak, with a general trading atmosphere. Ferro chrome demand stayed sluggish, which led to a slight pressure on ore prices and small market discounts. Market activity was low, and some traders also remained cautious with their trades, which reflected a negative sentiment.
Poor stainless steel market: The downstream stainless steel market remained sluggish, with a general trading atmosphere. Terminal demand has not improved, leading to a wait-and-see mentality among merchants and increased risk aversion. Most transactions were based on need-based demand.
Due to declining Shanghai nickel and stainless steel prices, merchants are pessimistic on the future market and are postponing purchases. Traders indicated that the market is in a bargaining phase, and price stability is seen as crucial for maintaining market confidence.
Outlook
The trajectory of ferro chrome market remains bearish due to low demand and declining prices, with merchants postponing purchases. Price stability is essential to restore market confidence amidst ongoing caution.
Note: This article has been written in accordance with an agreement between CBC and BigMint.
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