- High-carbon ferro chrome prices recover slightly
- Ample supply, weak steel demand cap upside
China’s ferro chrome prices showed mixed trends during the assessment week. High-carbon ferro chrome (Cr:50%, C:6-8%) rose by RMB 150/t ($22/t) w-o-w to RMB 7,990-8,400/t ($1,189-1,250/t). Medium-carbon ferro chrome (Cr:60%, C:1%) remained unchanged at RMB 12,700-13,000/t ($1,890-1,934/t), while low-carbon ferro chrome (Cr:60%, C:0.1%) also held steady at RMB 14,200-14,500/t ($2,113-2,157/t).
The market remained weak despite the slight increase in high-carbon ferro chrome prices, as high production and cautious stainless steel procurement continued to limit demand. Softer chrome ore costs also weakened production cost support, while stable electricity and other smelting costs provided a floor. Limited external market changes kept buyers and sellers cautious.
Market updates
Weaker ore market limits cost support: Chrome ore prices remained under pressure as port inventories declined more slowly than expected and overseas futures lacked upward momentum. South African and Turkish suppliers resisted significant price cuts, but reduced ferro chrome procurement continued to test ore price support.
Steel demand remains subdued: Stainless steel mills maintained cautious procurement amid weak margins and limited demand growth. Lower tender prices for high-carbon ferro chrome continued to weigh on market sentiment, while expected maintenance shutdowns at smelters could gradually ease supply pressure.
Outlook
China’s ferro chrome market is expected to remain weak in the short term. Weak steel demand will cap upside, while production cuts and high smelting costs should limit downside. Changes in key production-area operating rates and steel mill tenders will remain important market signals.
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