China: Ferro chrome prices inch down w-o-w amid cautious market sentiment

• Higher coking coal tags offset weaker chrome ore costs
• Tight mill margins lead to flat/lower ferro chrome bids

CBC: China’s high-carbon ferro chrome prices edged down by RMB 100/t ($14/t) w-o-w to RMB 8,090-8,500/t ($1,137-1,994/t) exw, including taxes.

Medium-carbon ferro chrome prices inched down by RMB 500/t ($70/t) w-o-w to RMB 12,600-12,800/t ($1,770-1,798/t) exw, including taxes.

Ferro chrome prices inched down amid cautious market sentiment and limited demand. Stable chrome ore supplies and weaker cost support pressured prices. The stainless steel sector showed mixed performance. Overall, market activity remained cautious, with most trades limited to short-term deals.

Market updates

Raw material market trends

South Africa’s plan to impose tariffs on unprocessed chrome ore led to supply concerns, but delays in the export licensing system eased the impact. Port supplies remained stable, and cautious domestic buying amid weak demand led to slight price corrections in both domestic and global markets.

The lingering impact of earlier strikes kept miners firm on prices, limiting the availability of low-cost material. Higher coking coal prices added to smelting costs, but weaker chrome ore prices offset part of the increase. Overall, cost support softened, pressuring margins for low- and medium-carbon ferro chrome producers.

Downstream market trends

The stainless steel industry, the main consumer of ferro chrome, showed mixed performance. Production in traditional sectors remained steady, supporting high-carbon ferro chrome prices, but pressure on steel mill margins led to flat or slightly lower bids, limiting price gains.

In emerging sectors such as hydrogen storage and photovoltaics, demand recovered slowly due to reduced policy support. Slower orders and increased trader selling added downward pressure on prices. Market sentiment stayed cautious, with limited speculative activity and most deals limited to short-term contracts.

Outlook

Ferro chrome prices are expected to remain range-bound in the near term. High-carbon ferro chrome will likely stay stable with limited upside, while medium- and low-carbon grades may face slight downward pressure. Supply disruptions or improved demand from new energy sectors could offer support.