- Ample supply and weak ore demand limit cost support
- Cautious stainless steel buying keeps market sentiment weak
China’s ferro chrome prices remained unchanged across all grades during the assessment week. High-carbon ferro chrome (Cr:50%, C:6-8%) held steady w-o-w at RMB 7,990-8,400/t ($1,191-1,252/t). Medium-carbon ferro chrome (Cr:60%, C:1%) remained at RMB 12,700-13,000/t ($1,893-1,937/t), while low-carbon ferro chrome (Cr:60%, C:0.1%) was unchanged at RMB 14,200-14,500/t ($2,116-2,161/t).
The market remained stable but under pressure from ample supply and cautious downstream buying. Unfavorable September steel mill tender signals and sluggish transactions continued to weigh on sentiment, while stable smelting costs provided some downside protection.
Market updates
Weak ore market limits cost support: Chrome ore prices remained under pressure as port inventories stayed high and overseas futures lacked upward momentum. South African and Turkish suppliers resisted significant price cuts, but weaker ferro chrome procurement continued to put pressure on ore prices.
Cautious steel demand keeps prices under pressure: TISCO’s continued tender price reductions reflected weak acceptance of ferro chrome prices. Demand from home appliances and other downstream sectors remained at basic levels, while high 300-series ferro chrome inventories continued to weigh on the market. A stronger September-October restocking cycle could provide support, but weaker-than-expected demand would keep prices under pressure.
Outlook
China’s ferro chrome prices are expected to remain range-bound in the short term. Weak demand will limit upside, while production cuts and high smelting costs should provide downside support.
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