- Falling coal costs lead to lower cost support
- Buyers continue with on-demand purchases
CBC: Chinese ferro chrome prices witnessed a slight uptrend despite overall market stability. Falling coal costs eased cost pressures, while mixed end-user demand across stainless steel grades kept the ferro chrome market balanced. Buyers continued to procure mainly on an on-demand basis.
High-carbon ferro chrome prices continued to edge up by RMB 100/tonne (t) ($14/t) w-o-w to RMB 8,390-8,800/t ($1,178-1,236/t) exw, including taxes.
Medium-carbon ferro chrome prices were up slightly by RMB 100/t ($14/t) w-o-w to RMB 13,500-13,700/t ($1,896-1,924/t) exw, including taxes.
Market recap
Falling coal prices ease cost pressure: Coal prices in major producing areas such as Inner Mongolia fell slightly, partially offsetting cost pressure.
Meanwhile, chrome ore prices stayed range-bound, with supply stability in key producing countries such as South Africa being a critical factor. Mining efficiency was at times hampered by outdated power infrastructure, while rising port inventories kept prices under pressure.
Overall, the raw material market remained in a tug-of-war between bullish and bearish factors, with ferro chrome producers facing the dual challenge of cost control and capacity management, reinforcing a wait-and-watch sentiment.
Production remains unaffected: Environmental inspections in key production regions also drew attention, though they did not significantly affect output, as some smelters had carried out equipment overhauls in advance.
End-user demand shows mixed trends:Infrastructure activity led to a rebound in 300-series stainless steel orders, while prolonged weakness in the real estate sector weighed on 200-series products, resulting in intermittent and regional demand for high-carbon ferro chrome
Micro-carbon ferro chrome consumption in new energy batteries continued to grow steadily. However, due to technological advancements, some companies shifted to nickel-based alternatives, which curtailed rapid growth in demand.
Moreover, the home appliance trade-in policy boosted 400-series stainless steel demand, lending support to the medium-carbon ferro chrome market.
These varied downstream trends supported the ferro chrome market, though buyers mainly procured on demand basis.
Outlook
Ferro chrome prices will likely remain range-bound in the near term, with high-carbon grades supported by infrastructure demand and medium-carbon grades supported by stainless steel and home appliance demand. However, a weak real estate sector may limit strong gains.
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