- Chrome ore prices inch up amid steady demand, firm sentiment
- Mill maintenance, production cuts weigh on ferro chrome demand
Chinese high-carbon ferro chrome (Cr 50%, C 6-8%) prices remained flat w-o-w at RMB 8,690-9,100/t ($1,260-1,320/t) exw, including taxes. Medium-carbon (Cr 60%, C 1%) prices also remained stable w-o-w at RMB 13,300-13,500/t ($1,929-1,958/t), while low-carbon (Cr 60%, C 0.1%) prices were unchanged at RMB 14,000-14,300/t ($2,030-2,074/t), all exw and inclusive of taxes.
Chinese ferro chrome prices remained stable w-o-w, supported by elevated chrome ore costs, while subdued stainless steel demand and cautious sentiment kept trading activity largely muted.
Market updates
Chrome ore prices inch up amid firm overseas supplier sentiment
The chrome ore market continued to show resilience, with spot prices edging higher and forward offers remaining elevated amid firm overseas supplier sentiment. Sellers largely held back from offering discounts, keeping quotations firm.
Despite relatively ample port inventories, reduced selling pressure supported price strength. Sustained high operating rates among ferro chrome producers ensured consistent demand for chrome ore, reinforcing the market’s firm tone.
Rising raw material costs and higher smelting expenses significantly increased ferro chrome production costs, providing continued support to finished prices while simultaneously squeezing smelters’ profit margins. Elevated holding costs further encouraged traders to maintain firm offers.
Demand remains weak amid cautious buyer sentiment
Overall, end-user demand remained lacklustre, with enterprises adopting a wait-and-see approach, primarily replenishing inventory in small batches as needed.
Divergent trends emerged across downstream sectors. Weak demand from the stainless steel segment, the core downstream application for ferro chrome, persisted due to concentrated maintenance and production cuts at enterprises. Traditional industries such as ceramics and coatings resumed operations slowly, compounded by low business sentiment in the real estate and infrastructure sectors.
In contrast, high-end manufacturing segments, including aerospace and advanced technologies, continued to demonstrate resilience. Rising demand for superalloys and chromium units provided targeted support to upstream ferro chrome consumption.
While short-term demand remains under pressure, medium- to long-term demand fundamentals continue to show gradual improvement.
Outlook
Ferro chrome prices are expected to remain stable next week, supported by elevated raw material costs and relatively tight supply conditions. However, weak stainless steel demand and cautious procurement are likely to limit gains.
A modest upside may emerge if downstream demand improves, though potential supply-side pressures from new capacity additions could cap price increases.
(With inputs from CBC)
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