- Strong stainless steel sales fail to lift FeCr demand
- Supply climbs up as northern plants resume output
CBC: Chinese ferro chrome prices remained largely stable w-o-w amid lukewarm demand.
High-carbon ferro chrome prices remained steady at RMB 7,740-8,150/t ($1,074 – $1,131 /t) exw, including taxes. Meanwhile, medium-carbon ferro chrome edged up by RMB 200/t ($28/t) w-o-w to RMB 12,600-12,800/t ($1,749-1,777/t) exw, including taxes.
Market recap
Various grades see mixed trends: High-carbon ferro chrome traded within a narrow range, as resumed output from northern plants and low inventory strategies at stainless steel mills led to a weak balance between supply and demand. Medium and low-carbon grades firmed up, supported by demand from the new energy sector.
However, off-market shipments increased due to financial pressure on traders. Environmental inspections continued to restrict outdated production units, while new carbon footprint regulations increased costs for compliant producers.
Overall, market sentiment remained cautious.
Turkish shipments ease supply pressure: Chrome ore price trends differed between domestic and international markets, increasing pressure on cost transmission. South African concentrate futures remained stable, while traders offered discounts in the spot market.
Increased Turkish ore shipments helped ease some supply tensions. The first round of coke procurement price cuts reduced support for smelting costs, but fluctuating green power prices continued to add cost pressures in western producing regions.
Meanwhile, the steady arrival of low-cost Zimbabwean ore could reshape raw material pricing. Port inventory clearance rates will be a key indicator to monitor in the short term.
End-user demand remains weak: The stainless steel industry experienced strong demand for finished products amid improved tariff policies between China and the US. However, producers showed weak buying interest for raw materials, with steel mills still cutting ferro chrome procurement prices.
Demand for medium and low-carbon products was supported by orders from emerging sectors such as iron-chromium flow batteries, but their small share made it difficult to reverse the overall market weakness.
Exports of high-carbon ferro chrome declined y-o-y, reflecting a shift towards long-term contracts by international buyers. Extended payment terms and reduced advance payments are adding financial strain to the supply chain.
Outlook
In the near term, ferro chrome prices are expected to remain stable. Despite strong demand for stainless steel, overall raw material trade remains weak, as mills continue cautious procurement. Rising production costs and subdued export activity are likely to limit significant price gains.
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