- Muted demand weighs on market sentiment
- Supply pressure builds amid policy shifts
CBC: The Chinese ferrochrome market remained stable w-o-w. Supply increased as northern producers resumed output and southern power costs fell, adding pressure on capacity. Flat pricing policy eased sentiment, keeping retail offers firm. Meanwhile, weak stainless demand and slow inventory reduction limited mills procurement and price adjustments.
High-carbon ferro chrome prices remain steady w-o-w at RMB 7,540-7,950/t ($1,051- $1,108/t) exw, including taxes.
Medium-carbon ferro chrome prices remained unaltered w-o-w to RMB 12,700-12,900/t ($1,771-1,798/t) exw, including taxes.
Market updates:
Imports ease on elevated inventories: Chrome ore prices remained stable, but signs of a supply-demand imbalance are emerging. The South African government’s recent approval of export controls is expected to heighten concerns over medium- to long-term supply tightness.
Despite high port inventories, import volumes in Q2 fell y-o-y, and steel mills have shown limited willingness to accept high-priced ore. This has led to intensified bargaining between buyers and sellers.
Additionally, Kazakhstan’s high-grade ferrochrome continues to be priced above domestic alternatives, reducing the cost advantage of imports. As a result, some steel mills are shifting toward domestic procurement
End-user weakness dampens consumption: Ferro chrome demand in the stainless-steel sector showed structural differences. In July, major steel mills reduced production, with a sharp drop in medium- and low-carbon ferrochrome purchases.
Meanwhile, stable demand for micro-carbon ferrochrome in special steel supported its price premium. On the demand side, weak performance in real estate and machinery manufacturing, along with reduced construction equipment usage, suppressed steel consumption.
Rising anti-dumping tariffs in countries like Vietnam further hindered exports, adding pressure to domestic stainless-steel inventories and negatively impacting ferrochrome demand.
Outlook
In the short term, ferro chrome prices are likely to remain rangebound. The imbalance between rising supply and weakening demand is expected to persist, while the steel bidding mechanism continues to delay market clearance.
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