- Chrome ore tags rise post-Lunar New Holidays
- FeCr bids of major steel mills remain flat w-o-w
CBC: China’s ferro chrome prices strengthened w-o-w, with high-carbon and medium-carbon witnessing an uptick. However, steel mill activity in the southern region declined, and inventories of ferro chrome and chrome ore were at normal levels.
Prices
High-carbon ferro chrome: Prices stood at RMB 7,300-7,700/t ($999-1,054/t) exw, including taxes, up by RMB 400/t ($55/t).
Medium-carbon ferro chrome: Prices edged up by RMB 100/t ($14/t) to RMB 11,900-12,100/t ($1,629-1,657/t) exw, including taxes.
Factors driving market
Chrome ore market rises, then stabilises post-holidays: After a sharp rise following the Lunar New Year holidays, the chrome ore market stabilised at the beginning of the week. Tight supply caused a rapid rise in spot prices.
Additionally, ferro chrome bids of major steel mills remained flat w-o-w, lending support to chrome prices and minimising the price pressure seen previously.
Steel market faces persistent price pressures: The steel market initially benefited from the stimulus of domestic quantitative easing policies, leading to a rise in prices. However, the underlying issue of supply-demand imbalance remains unresolved. Amid weak demand, the supply side’s only viable option has been to reduce production. With no significant improvement expected in downstream demand, price pressures are likely to continue, ultimately impacting the mining sector.
Outlook
The ferro chrome market is likely to remain stable in the short term, amid slow steel mill production and cautious trader activity. Price adjustments will be minimal, and high spot prices, especially in northern regions, will persist.
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