- Chrome ore prices stay firm amid tight supply
- Weak stainless steel demand limits market activity
Chinese high-carbon ferro chrome (Cr 50%, C 6-8%) prices remained stable at RMB 8,690-9,100/t ($1,267-1,327/t) exw, including taxes. Medium-carbon (Cr 60%, C 1%) prices were also steady at RMB 13,400-13,600/t ($1,954-1,983/t), while low-carbon (Cr 60%, C 0.1%) prices remained unchanged at RMB 14,100-14,400/t ($2,056-2,099/t), all exw and inclusive of taxes.
Overall, Chinese ferro chrome prices remained stable, supported by elevated chrome ore costs, while subdued stainless steel demand and cautious sentiment kept trading activity largely muted.
Market updates
Chrome ore prices remain firm amid cost pressures
The domestic ferro chrome market remained stable, with balanced supply-demand dynamics. Elevated chrome ore prices and tight spot availability continued to support producer offers, with smelters maintaining firm pricing and limited willingness to sell at lower levels.
In the raw material market, chrome ore prices were firm to slightly stronger, with spot and forward prices remaining elevated amid firm overseas supplier sentiment. Traders maintained firm offers, while easing pressure from port inventories and sustained operating rates at ferro chrome plants ensured steady demand for ore. Rising raw material costs continued to support ferro chrome prices, although profit margins for smelters remained under pressure.
Demand remains weak amid cautious procurement
Downstream demand showed mixed trends across industries. Stainless steel production declined slightly due to maintenance shutdowns and output cuts, which weakened ferro chrome procurement. Traditional sectors such as ceramics and coatings resumed operations slowly, while weak real estate and infrastructure activity further reduced end-user demand. Most companies purchased ferro chrome only in small quantities as required. Meanwhile, demand from high-end manufacturing sectors such as aerospace, AI computing infrastructure, and gas turbines was stronger, supporting demand for high-temperature alloys and indirectly sustaining ferro chrome consumption.
Outlook
Ferro chrome prices are expected to remain stable in the short term, supported by elevated chrome ore costs and firm supply-side fundamentals. However, weak stainless steel demand and cautious procurement are likely to limit any significant upside.
Going forward, market participants might closely monitor stainless steel production resumption, procurement trends of major mills, port inventory movements, and freight cost fluctuations. While a gradual demand recovery may support prices, increasing supply pressures could cap gains.
(With inputs from CBC)
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