- Firm raw material costs support prices
- Cautious buying limits price upside
China’s ferro chrome prices were mostly stable this week, with a slight rise seen in low-carbon material. High-carbon ferro chrome (Cr: 50%; C: 6-8%) prices stayed unchanged at RMB 8,490-8,900/t ($1,220-1,279/t), averaging RMB 8,695/t ($1,249/t) exw. Medium-carbon ferro chrome (Cr: 60%; C: 1%) prices also remained steady at RMB 12,900-13,100/t ($1,853-1,882/t) exw. In contrast, low-carbon ferro chrome (Cr: 60%; C: 0.1%) prices increased by RMB 100/t ($14/t) to RMB 13,600-13,900/t ($1,954-1,997/t), supported by better demand.
Overall, the ferro chrome market showed mild strength. Supply and demand for high-carbon material were largely balanced, while stable stainless steel production continued to support demand. Environmental restrictions limited output at some plants, keeping supply tight. Medium-carbon prices were supported by steady demand from alloy producers, while rising raw material costs and stronger low-carbon steel demand pushed low-carbon prices higher. Market sentiment remained cautious, with stable cash flow and limited speculative activity.
Raw material market
Chrome ore prices remained firm, providing strong cost support to ferro chrome producers. Supply from key regions such as South Africa stayed tight due to logistics issues and environmental controls. Rising power and energy costs added to production pressure, although producers tried to manage costs through efficiency improvements. Traders remained cautious, and overall sentiment in the raw material market stayed stable.
Downstream market
Demand from the stainless steel sector remained steady, supporting overall ferro chrome consumption. Demand for low-carbon ferro chrome improved due to stronger low-carbon steel production, while medium-carbon demand from the alloy industry stayed healthy. High-carbon demand showed limited movement as stainless steel mills adjusted production schedules. Most downstream buyers continued to rely on long-term contracts, and market sentiment remained balanced.
Outlook
In the short term, ferro chrome prices are expected to follow a mixed trend. High and medium-carbon prices are likely to remain stable, while low-carbon prices may see further small gains. Looking ahead, high raw material costs and gradual demand growth could support prices, but market participants will continue to watch macroeconomic factors and environmental policies closely. With limited supply growth, price fluctuations may increase in the coming period.
(With inputs from CBC)
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