- Tight ore supply maintains upward cost pressure
- Downstream sector shows varied market trends
CBC: China’s high-carbon ferro chrome prices inched down by RMB 100/t ($14/t) w-o-w to RMB 7,990-8,400/t ($1,124-1,182/t) exw, including taxes.
Medium-carbon ferro chrome prices fell slightly by RMB 200/t ($28/t) w-o-w to RMB 12,400-12,600/t ($1,744-1,773/t) exw, including taxes.
China’s ferro chrome prices saw modest declines across both high- and medium-carbon grades. Supply concerns persisted as South Africa’s tariff policy tightened chrome ore availability and kept raw material costs elevated. While stainless steel demand remained weak, emerging sectors provided some support.
Market updates
Raw material market trends
South Africa’s export licensing policy had tightened chrome ore supply, leading international traders to stockpile and pushing up raw material costs. China’s heavy reliance on these imports has created a structural shortage, limiting smelter output as inventories remain low.
Lower electricity costs in Inner Mongolia supported production, while higher power costs in southern regions added pressure. The policy-driven rise in raw material costs also squeezed smelter margins, prompting some producers to raise prices.
Traders stayed firm on pricing, but limited downstream acceptance kept spot market activity subdued, with most transactions confined to long-term contracts.
Downstream market trends
The downstream market showed mixed trends. High-carbon ferro chrome demand remained weak as the stainless steel sector maintained cautious procurement, limiting price increases. In contrast, medium- and low-carbon ferro chrome benefited from strong demand in emerging applications such as aero-engines, gas turbines.
Domestic infrastructure activity and the recovery in the manufacturing sector supported overall consumption, although traditional demand growth slowed. Profit margins for high-carbon ferro chrome were squeezed by stainless steel price pressure.
Meanwhile, medium- and low-carbon variants remained relatively firm due to stable demand from high-end products. Overall sentiment remained cautious, with traders less active and spot activity limited, with most transactions occurring through long-term contracts.
Outlook
Ferro chrome prices will likely remain volatile in the near term, as South Africa’s tariff policy is expected to tighten chrome ore supply and keep raw material costs high. Strong demand from emerging sectors is expected to support prices, even as the stainless steel industry is likely to recover gradually.
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