- Chrome ore support continues to weaken
- Stainless steel mills cut output
Chinese ferro chrome prices were unchanged w-o-w, with high-carbon ferro chrome (Cr:50%, C:6-8%) at RMB 7,840-8,250/t ($1,163-1,223/t), medium-carbon ferro chrome (Cr:60%, C:1%) at RMB 12,800-13,000/t ($1,899-1,928/t), and low-carbon ferro chrome (Cr:60%, C:0.1%) at RMB 13,200-13,500/t ($1,958-2,002/t).
The market remained under pressure despite stable prices, as weaker chrome ore costs and limited downstream buying weighed on sentiment. Major stainless steel mills had already settled their July tenders, while the summer off-season reduced demand for ferro chrome. Large-volume transactions remained limited, with buyers and sellers largely taking a wait-and-see approach.
Market updates
Weaker ore demand limits cost support: Chrome ore prices remained under pressure as port inventories of major grades declined more slowly than expected. Overseas ore futures also lacked strength, while lower buying volumes from ferro chrome producers continued to put pressure on ore prices. Suppliers of South African and Turkish ore resisted large price cuts, but weaker demand reduced support for ferro chrome production costs.
Stainless steel output cuts reduce ferro chrome demand: The seasonal slowdown in stainless and specialty steel deepened, with major mills carrying out production cuts and maintenance. Mills mainly used existing inventories, with limited new buying outside long-term contracts. Lower steel mill margins also added pressure on ferro chrome suppliers, while traders remained reluctant to build stocks.
Outlook
Ferro chrome prices are likely to stay range-bound in the short term. Weak steel demand and softer ore costs will limit upside, while high smelting costs and further production cuts should restrict the downside. The next round of September steel mill tenders and changes in operating rates at major production areas will be key market signals.
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