China: Ferro chrome prices hold steady w-o-w despite downstream slowdown

• Smelters struggle to raise tags despite higher coke costs
• Output curbs at stainless steel mills limit FeCr demand

CBC: Chinese ferro chrome prices remained stable w-o-w. Market sentiment stayed cautious, with transactions becoming limited and traders maintaining a wait-and-watch approach amid mixed signals from upstream and downstream segments.

High-carbon ferro chrome prices remained flat w-o-w at RMB 7,540-7,950/tonne (t) ($1,051-1,108/t) exw, including taxes.

Medium-carbon ferro chrome prices also remained unchanged w-o-w at RMB 12,700-12,900/t ($1,770-1,798/t) exw, including taxes.

Market updates

Chrome ore prices remain steady despite high stockpiles: Chrome ore prices remained largely stable in recent days, with no major changes in quotes from key suppliers such as South Africa. However, large stockpiles sitting at domestic ports created pressure on the market. As there was plenty of material available, buyers were not in a rush to make new purchases, and sellers found it harder to close deals. This oversupply slowed down trading activity and kept overall sentiment weak despite steady pricing.

Smelters struggle to raise prices: Although input costs, especially coke and logistics, have increased recently, smelters found it difficult to raise ferro chrome prices accordingly. The primary reason was weak demand from downstream industries such as stainless steel, where mills reduced or suspended production. This mismatch created a pricing deadlock, with producers unwilling to reduce offers due to thin margins and buyers hesitant to purchase at elevated levels. Ferro chrome imports from South Africa also surged, applying further pressure on domestic producers.

Downstream demand slows amid seasonal lull: The stainless steel market remained in a seasonal lull, and production curtailments limited ferro chrome demand. In addition to a slight drop in recent bidding prices, reduced procurement volumes signalled tepid buying interest. Meanwhile, funding constraints kept liquidity tight.

Outlook

Chinese ferro chrome prices are expected to stay range-bound w-o-w, influenced by rising coke costs and uncertain stainless steel output. A clearer demand recovery is needed to shift the trend.