- Stable chrome prices cushion market downside
- Cautious sentiment limits market momentum
CBC: The Chinese ferro chrome market remained stable w-o-w, barring minor price declines, supported by firm costs and inventory management, despite cautious demand in the off-season. While stainless steel mills stayed conservative, supply-side adjustments and chrome ore dynamics shaped future trends.
High-carbon ferro chrome prices remained unchanged w-o-w at RMB 7,440-7,850/tonne (t) ($1,038- $1,096/t) exw, including taxes.
However, medium-carbon ferro chrome prices dipped by RMB 100/t ($14/t) w-o-w to RMB 12,700-12,900/t ($1,772-1,800/t) exw, including taxes.
Market recap
Supply rises, but inventory pressure stays manageable: Resumed operations at some ferro chrome plants lifted capacity utilisation, yet factory inventories remained under control. Although production picked up, manufacturers were cautious, ensuring that output did not outpace tepid demand from steel mills.
Cost support offsets demand slowdown: Stable chrome ore prices and fluctuating electricity costs provided cost support and influenced smelting margins. While traders feared off-season demand contraction, consistent raw material tags and shrinking high-grade ore arrivals from Zimbabwe supported price resilience and may continue to do so.
Divergent downstream trends shape outlook: Construction demand for stainless steel weakened in the off-season, leading to subdued procurement and cautious sentiment. However, high-end auto and new energy sectors showed strength. Low-carbon ferro chrome gained traction, and special steelmakers increased stockpiling, despite longer inventory turnover and limited spot liquidity.
Outlook
The ferro chrome market may remain range-bound in the near term, supported by firm raw material costs and cautious supply. However, an off-season demand slowdown and weak stainless steel trade activity could limit upside potential.
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