China: Ferro chrome prices hold firm w-o-w on steady demand, cost support

• Production cuts, policy changes weigh on chrome ore supply
• Global stainless steel demand expected to recover in near term

CBC: China’s high-carbon ferro chrome prices remained steady w-o-w at RMB 7,990-8,400/t ($1,127-1,186/t) exw, including taxes.

Meanwhile, medium-carbon ferro chrome prices held firm w-o-w at RMB 12,400-12,600/t ($1,750-1,778/t) exw, including taxes.

Ferro chrome prices remained stable, supported by steady stainless steel demand and firm raw material costs. However, weak micro-carbon demand and cautious market sentiment continued to restrict any major price gains.

Market updates

Raw material market trends

Chrome ore remained the key driver of the ferro chrome raw material market. Supply growth was limited due to production cuts in South Africa and changes in Turkiye’s export policies. Rising raw material, energy, and logistics costs squeezed ferro chrome manufacturers’ margins and reduced their production interest.

Although policy risks, such as South Africa’s export controls or Turkiye’s currency fluctuations, created the possibility of temporary chrome ore supply tightness, overall sentiment stayed neutral, and buying remained cautious. Raw material support helped prevent a sharp drop in ferro chrome prices, but profit pressure led manufacturers to slow their procurement pace.

Downstream market trends

The stainless steel industry provided steady demand that supported high- and medium-carbon ferro chrome prices. However, a short-term slowdown in micro-carbon ferro chrome demand led to a decline in the grade’s prices. The special alloys sector maintained strong order levels, supporting medium-carbon ferro chrome demand, but overall sentiment remained cautious, and there was no significant shift in fund inflows.

At the policy level, expectations of a recovery in global stainless steel demand were likely to improve ferro chrome buying interest, but uncertainty around potential strikes in South Africa continued to pose a risk. Cost pressures limited the profit margins of downstream manufacturers, restricting large-scale inventory replenishment.

Outlook

Ferro chrome prices are expected to remain range-bounded, supported by demand for high- and medium-carbon grades, while weak micro-carbon demand limits the upside. The market is likely to be influenced by potential supply uncertainties and policy risks in the near term.