- South African chrome ore supply tightens
- New energy demand offers limited support
CBC: China’s high-carbon ferro chrome prices remained stable w-o-w at RMB 8,190-8,600/t ($1,149-1,206/t) exw, including taxes.
Medium-carbon ferro chrome prices remained largely stable, edging down by RMB 100/t ($14/t) w-o-w to RMB 13,100 -13,300/t ($1,837-1,865/t) exw, including taxes.
Ferro chrome prices remained largely stable, supported by high ore costs amid limited supply from South Africa. However, weak stainless steel demand and cautious buying kept market activity subdued, with most trades driven by immediate requirements.
Market updates
Raw material market trends
High chrome ore prices provided firm support to ferro chrome production costs. In South Africa, a major supplier faced a stalemate in labour negotiations, which reduced port shipping efficiency and worsened the spot market shortage. Turkish miners took advantage of the situation to maintain premium prices, further driving up raw material costs.
Domestic chrome ore inventories remained at moderate levels, with buyers making purchases cautiously on a need basis. Energy control policies continued to restrict production capacity, thereby curbing raw material demand.
Downstream market trends
The downstream stainless steel industry has entered its seasonal off-peak period, and procurement has slowed down, putting pressure on ferro chrome prices. Although demand from the new energy sector is growing, its impact remains limited.
On the policy front, reduced new energy subsidies have slowed chromium salt demand, while stricter emission rules are driving a shift toward high-purity ferro chrome products. Overall, buyers continued to push for lower prices, with most transactions mainly driven by immediate needs.
Outlook
Ferro chrome prices are expected to remain range-bound in the near term, supported by high ore costs, while weak stainless steel demand and cautious buying sentiment are likely to limit upward momentum.
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