- Higher chrome ore costs support FeCr prices
- EU carbon policy boosts low-carbon FeCr demand
CBC: Chinese ferro chrome prices remained stable w-o-w, supported by higher raw material costs due to tight chrome ore supply. However, in the stainless steel sector, demand stayed weak, though industrial consumption was supported by growth in the new energy sector.
High-carbon ferro chrome prices remained steady w-o-w at RMB 8,390-8,800/t ($1,179-1,237/t) exw, including taxes.
Medium-carbon ferro chrome prices inched up by RMB 200/t ($28/t) w-o-w to RMB 13,700-13,900/t ($1,926-1,954/t) exw, including taxes.
Market recap
High chrome ore costs support FeCr prices: Chrome ore prices remained elevated due to supply constraints. The power crisis in South Africa reduced output, while Turkey’s export tariffs intensified the shortage of medium and low-grade ore.
Chrome ore stocks at domestic ports are at their lowest level this year. With winter raising transportation risks in South Africa and Zimbabwe’s railway capacity issues still unresolved, supply pressures persisted. As a result, chrome ore costs continued to provide firm support to ferro chrome prices.
Stainless steel demand shows mixed trends: Demand for construction stainless steel weakened under the impact of real estate regulations, while industrial consumption was supported by steady growth in new energy equipment manufacturing.
Additionally, the end of the EU carbon tariff transition period prompted some export-oriented enterprises to source low-carbon ferro chrome to reduce carbon costs.
Outlook
In the near term, ferro chrome prices are likely to remain stable, supported by tight chrome ore supply, Industrial stainless steel and low-carbon ferro chrome are likely to benefit from steady growth in the new energy sector and policy support.
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