- Steel mill price pressure weighs on all ferro chrome grades
- Weak chrome ore demand further erodes cost support
China’s ferro chrome prices declined across all grades during the assessment week. High-carbon ferro chrome (Cr:50%, C:6-8%) fell by RMB 50/t ($7/t) w-o-w to RMB 7,740-7,950/t ($1,159-1,190/t). Medium-carbon ferro chrome (Cr:60%, C:1%) dropped by RMB 100/t ($15/t) to RMB 12,100-12,800/t ($1,812-1,917/t), while low-carbon ferro chrome (Cr:60%, C:0.1%) also decreased by RMB 100/t ($15/t) to RMB 14,000-14,300/t ($2,096-2,141/t).
The market weakened as lower steel mill bids, cautious stainless steel procurement and softening raw material costs continued to pressure prices. Production cuts at some mills provided limited support, but ample supply and sluggish transactions kept market sentiment bearish.
Market updates
Weak ore market erodes cost support: Chrome ore prices remained under pressure as port inventories stayed high and overseas futures lacked upward momentum. South African and Turkish suppliers resisted significant price cuts, but weak procurement from ferro chrome smelters continued to pressure ore prices.
Steel mill pressure weighs on demand: Stainless steel producers remained cautious amid weak seasonal demand, high inventories and margin pressure. Mills largely limited purchases to immediate requirements, while lower tender prices further weakened ferro chrome market sentiment.
Outlook
China’s ferro chrome prices are expected to remain weak in the short term as subdued demand and ample supply limit recovery. Further production cuts may provide some downside support.
Leave a Reply