China’s Baosteel, one of the major players in the global stainless steel industry, has reduced the purchase price of high carbon ferro chrome by 500 Yuan M-o-M to set it at 10,300 Yuan (USD 1453.2) per tonne for Jan’17. The fall in purchase price comes after months of sharp rise in prices. This development can be attributed to the supply scenario easing out after import volumes went soaring up in the previous months. According to Data released by the Chinese Customs, Ferro Chrome imports by China was recorded at 262,097 MT in Nov’16.
Most market sources are of the view, that the primary reason for the reduction in purchase prices of ferro chrome is the upcoming Chinese spring festival – traditionally a time when most mills undergo maintenance, thereby negatively impact demand. Furthermore, other major steel mills like Tsingshan Steel and Taiyuan had also lowered their purchase price for Jan’17 by RMB 200/MT and RMB 300/MT respectively.
SteelMint assessed that this is indicative of the fact that Ferro Chrome demand from China’s Stainless Steel sector is finally starting to wane, after months of aggressive buying by the Chinese.
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