South African Ferro Chrome exports witnessed a rise of 7% M-o-M in Apr’17 against Mar’17.
South Africa, the largest exporter, as well as the second largest producer of Ferro Chrome in the world, has exported 0.30 MnT in Apr’17, as per South African Trade Customs. In Mar’17, the said country has exported 0.28 MnT of Ferro Chrome.
However, Ferro Chrome export by South Africa registered a decrease of around 15% Y-o-Y in Apr’17 against Apr’16 at 0.35 MnT.
China’s Ferro Chrome import from South Africa
China remains the largest consumer of South African Ferro Chrome. In Apr’17, China imported 0.76 MnT Ferro Chrome against 0.86 MnT in Mar’17.
China has witnessed a decrease of around 12% M-o-M in its Ferro Chrome imports from South Africa. Moreover, there has also been a substantial decrease of 59% on Y-o-Y basis, while comparing Apr’17 volumes with that of Apr’16 exports.
Present Ferro Chrome Scenario
With Chrome Ore prices sinking and Stainless Steel market performing very poorly in China, Ferro Chrome has also been suffering as its offers are continuously sliding. China has been witnessing deterioration in its Ferro Chrome demand and major stainless steel mills lowered there purchase price by around RMB 2,750/MT M-o-M (USD 400/MT) for May’17 purchases, and are expected to lower their purchase price even further in June.
However, the global Ferro Chrome prices are expected to find its floor very soon, as the prices in China are below the cost of production in India, and the stronger South African Rand along with the imminent onset of the country’s expensive winter power tariff could halt Ferro Chrome prices from sliding down further.
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