- Elevated chrome ore prices offer cost support
- Ample inventories with mills limits trading
Chinese high-carbon ferro chrome (Cr 50%, C 6-8%) prices remained stable w-o-w at RMB 8,490-8,900/t ($1,245-1,304/t), Medium-carbon (Cr 60%, C 1%) prices were unchanged at RMB 13,300-13,500/t ($1,949-1,978/t), while low-carbon (Cr 60%, C 0.1%) prices also held steady at RMB 14,000-14,300/t ($2,051-2,095/t), exw including taxes.
Overall, ferro chrome prices remained stable on a weekly basis, as firm chrome ore costs offset weak downstream demand and cautious market sentiment.
Market updates
Firm ore costs support market sentiment
Chrome ore prices remained elevated despite slight spot corrections, supported by firm overseas supplier sentiment and high mining and logistics costs. Producers maintained firm offers and showed limited willingness to reduce prices, even as production cuts and maintenance at some ferro chrome plants dampened sentiment.
Weak demand keeps trading subdued
Downstream stainless steel demand remained weak, with mills holding sufficient inventories and continuing need-based procurement. Soft tender prices and cautious buying behaviour limited transactions, keeping overall market activity subdued.
Outlook
Chinese ferro chrome prices are expected to remain stable with a slight downside risk in the coming week. While elevated chrome ore costs will continue to provide support, weak demand and cautious procurement are likely to cap any meaningful upside.
(With inputs from CBC)
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