CBC: The ferro chrome market experienced stable pricing conditions, with prices for high- and medium-carbon ferro chrome remaining unchanged. However, there are signs of weakening demand in the short term due to a combination of factors.
High-carbon ferro chrome: Prices stood at RMB 7,300-7,700/t ($1,007-1,062/t) exw, including taxes, unchanged w-o-w.
Medium-carbon ferro chrome: Prices ranged in between RMB 12,000-12,200/t ($1,656-1,683/t) exw, including taxes.
Factors driving market
Stable market but softening demand: The overall ferro chrome market remained steady, with no significant changes in market prices. Despite this, the demand for ferro chrome has declined as steel mill production in the southern regions has been lower than anticipated. Some mills are not yet engaging in sales, and the market has seen a slow recovery in transactions. As a result, the outlook for the short-term ferro chrome market is weak, with a cautious atmosphere prevailing.
Raw material price stability: The chrome ore market has remained stable following a post-holiday price spike. A tight supply of chrome ore earlier led to an increase in spot prices. However, as the supply of chrome ore returns to normal levels, the market has stabilized. Additionally, major steel mills have recently participated in flat ferro chrome bidding, a shift from previous price-pressing trends, offering positive support for chrome products in the near term.
Steel market weakness and production challenges: Despite initial price increases due to domestic stimulus policies, the steel market faces persistent issues with supply-demand imbalances. Although there was an early boost, the underlying weakness remains, with demand continuing to lag. As a result, steel mills are reducing supply, and the downstream demand for ferro chrome is unlikely to improve significantly in the near future. This ongoing pressure on prices may continue to influence the overall ferro chrome market dynamics.
Outlook
In conclusion, while ferro chrome prices remain stable, the outlook for the market in the short term is weak due to softening demand and production slowdowns in the steel sector.
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