- Chrome ore tags rise by RMB 1/t ($0.14/t) w-o-w
- Some smelters raise offers despite tepid demand
CBC: The ferro chrome market remained stable this week, bolstered by the continued rise in futures and spot prices of chrome ore despite subdued downstream demand. As these increases have pushed up production costs, certain factories showed a willingness to raise their quotations, though market sentiment was cautious amid a weak steel industry.
High-carbon ferro chrome: Prices stood at RMB 7,640-8,050/t ($1,053-1,109/t) exw, including taxes, up slightly by RMB 45/t ($6/t) w-o-w.
Medium-carbon ferro chrome: Prices remained unchanged w-o-w at RMB 12,000-12,200/t ($1,653-1,681/t) exw, including taxes.
Factors driving market
Chrome ore prices rise: Chrome ore saw a slight price increase w-o-w. South African chrome ore and high-grade chrome concentrate prices rose by RMB 1/t ($0.14/t) w-o-w. Overall pricing sentiment among miners remained firm, with minimal availability of low-priced sources. The higher prices were further reinforced by a slight but continuous rise in foreign futures transactions, which contributed to an optimistic outlook for the market.
Downstream market faces pressures: The domestic steel market benefited from recent quantitative easing measures, pushing prices upward. However, the underlying issues of supply-demand imbalance remain unresolved. Demand for steel continues to be weak, and the persistent pressure on prices has impacted the raw material sectors too. While there is little expectation for a significant improvement in downstream demand in the short term, reduced supply remains a key strategy to manage the ongoing challenges.
Outlook
The ferro chrome market is currently in a balancing act, driven by rising chrome ore prices and cautious industry sentiment. Influenced by steel bidding trends and ongoing fluctuations in chrome ore prices, the market is expected to experience small adjustments. Overall, participants maintain a wait-and-watch approach for the short term.
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