- Stable supply conditions but limited cost support
- Steady demand with cautious buying sentiment
China’s high-carbon ferro chrome prices remained unchanged w-o-w at RMB 7,990-8,400/t ($1,131-1,189 /t) exw, including taxes as of 9 December.
Meanwhile, medium-carbon ferro chrome prices inched down by RMB 100/t ($14/t) w-o-w at RMB 12,300-12,500/t ($1,741-1,770/t) exw, including taxes
Market updates
Raw material market trends
The ferro chrome raw material market remains largely stable. Chromium ore supply is sufficient, supported by strong overseas shipments, although slow depletion of port inventories continues to weigh on prices.
Electricity costs remain steady, but production restrictions in some regions due to environmental policies have made buyers more cautious.
Overall sentiment is subdued, with traders relying mainly on long-term contracts and showing limited interest in fresh purchases, resulting in minimal cost support.
Downstream market trends
Downstream stainless steel demand remained steady, providing support to ferro chrome, though mills continued to purchase mainly on a need-basis, with no major stocking activity.
Demand for low-carbon ferro chrome improved in emerging sectors such as new energy equipment manufacturing, but the current demand scale remained limited, reducing its overall market impact.
Overall, market sentiment remained cautious, with producers waiting for clearer demand signals.
Outlook
Ferro chrome prices are expected to remain mostly unchanged over the course of December, supported by steady demand and firm costs, while environmental restrictions will likely limit supply.
(With inputs from CBC)
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