China: Ferro chrome prices largely steady w-o-w in cautious market

• Downstream weakness keeps ferro chrome market weak
• Supply-demand imbalance persists in stainless steel space

CBC: The ferro chrome market remained largely steady, with some price increases. High-carbon ferro chrome prices remained stable, while medium-carbon ferro rebounded slightly by RMB 100/t ($14/t). However, southern iron mills’ operations are declining, and demand from steel mills and the stainless steel industry remains weak, creating a cautious market atmosphere.

Prices

High-carbon ferro chrome: Prices were unaltered w-o-w at RMB 6,900-7,300/t ($941-996/t).

Medium-carbon ferro chrome: Prices inched up w-o-w to RMB 11,800-12,000/t ($1,596-1,623/t) exw, including taxes.

Factors driving market

Weakness persists in chrome ore prices: The chrome ore market remained weak, with domestic spot prices fluctuating within a narrow range. Foreign futures for chrome ore from Turkiye, Albania, Iran, Zimbabwe, and Pakistan are similarly subdued. The continued weakness in the downstream ferro chrome market exerted ongoing pressure on chrome ore raw materials, keeping prices low.

Despite price-supporting sentiment from futures and spot traders, the overall market downturn is difficult to overcome. Amid capital turnover pressures and the risk of future price declines, traders are selling at discounted prices.

Dull stainless steel market: The stainless steel market initially benefited from the stimulus packages, leading to an initial increase . However, the underlying issue of supply-demand imbalance persisted, and weak demand continued to create a negative market atmosphere. As a result, reducing supply remained the only viable option for the supply side. With limited improvement in downstream demand, price pressures are expected to persist, ultimately affecting the mining sector as well.

Outlook

Steel mills’ production schedules have fallen short of expectations, leading to slow bidding and cautious middle traders. With normal ferro chrome and chrome ore inventories, the market is expected to experience small adjustments in the short term, with limited impact on the prices.