Chinese ferro chrome price remained unchanged this week due to the stability in the stainless steel and raw material market. Prices of various grades were:
- High-carbon ferro chrome: Prices were at RMB 8,750-8,950/t ($1,211-1,239/t).
- Medium-carbon ferro chrome: Prices hovered at RMB 13,700-13,800/t ($1,896-1,910/t). All prices are ex-works and include taxes.
Factors driving market:
Tsingshan’s influence: There was a delicate balance in the ferro chrome market this week With Tsingshan Group maintaining their tender price for high-carbon ferro chrome, it offered stability and prevented further decline in retail prices.
Steady chrome ore market: The stability in the chrome ore market, coupled with steady bidding prices for ferro chrome, fostered confidence among stakeholders.
However, the ongoing Red Sea crisis added layer of complexity, as international shipping companies announced price increases for May. This scenario suggests that import costs for chrome ore traders are rising, making it unlikely for prices to decrease in the near term.
Dull stainless steel futures: Stainless steel market witnessed some challenges despite stable trading conditions. The weak and fluctuating performance of stainless steel futures contributed to a lackluster spot market. Additionally, subdued demand from downstream industries were putting pressure on stainless steel prices.
Outlook
Despite the high costs for manufacturers, they may not be eager to offer discounts, which could indicate a confidence in maintaining current pricing levels.
However, it’s worth monitoring how the dynamics between supply and demand evolve over time, as they could influence future market trends.
Note: This article has been written in accordance with an agreement between CBC and BigMint.