- Higher chrome prices raise production costs
- Buying remains weak on soft end-user demand
CBC: Chinese ferro chrome prices rose slightly on tighter South African ore supply, and firm raw material costs, despite softer coke prices, supported market sentiments. However, weak end-user demand limited ferro chrome buying.
High-carbon ferro chrome prices edged up by RMB 200/tonne (t) ($28/t) w-o-w to RMB 8,290-8,700/t ($1,161-1,218/t) exw, including taxes.
Medium-carbon ferro chrome prices were up slightly by RMB 200/t ($28/t) w-o-w to RMB 13,400-13,600/t ($1,876-1,905/t) exw, including taxes.
Market updates
Raw material market remains firm: Although coke prices edged down, they did not offset the upward pressure from chrome ore, and the overall raw material market stayed firm.
Chrome ore prices remained elevated amid supply constraints. Power supply issues and transport delays in South Africa reduced port arrivals, accelerating inventory depletion. Meanwhile, changes in Turkey’s export policy further tightened chrome ore supply, pushing up ferro chrome production costs.
Weak end-user demand limits buying: Stocking activity in the stainless steel industry picked up before the traditional peak season, but a weak recovery in end-user demand limited ferro chrome purchases.
Rising demand from the new energy battery sector supported low-carbon ferro chrome prices.
Outlook
Ferro chrome prices are likely to stay range-bound in the near term. Firm raw material costs from chrome ore shortages will support the market, while weak end-user demand may limit upside.
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