- High production costs, buyer caution cap price gains
- Seasonal slowdown dampens stainless steel demand
CBC: Ferro chrome prices remained stable as downstream stainless-steel mills entered the traditional off-season, resulting in weak procurement and extending raw material inventory cycles. Despite supportive policies, trading activity has remained light. Rising production costs and falling prices have pressured producers, tightening market liquidity.
High-carbon ferro chrome prices remained unchanged w-o-w at RMB 7,740-8,150/t ($1,074 – $1,131 /t) exw, including taxes.
Meanwhile, medium-carbon ferro chrome prices remained steady w-o-w at RMB 12,600-12,800/t ($1,749-1,777/t) exw, including taxes.
Market updates
Chrome ore prices stay elevated: Prices remained high and volatile, with labour disputes at South African ports, which disrupted shipping and caused a structural shortage of port inventory. While Turkish miners maintained firm offers, Chinese buyers showed limited acceptance, widening the price gap between the markets.
While demand for chromium salts in the new energy sector is growing, it has yet to reach a scale that significantly impacts the market. The stainless-steel industry remains the dominant driver of chrome ore demand.
With downstream buyers pushing for lower prices and the landed cost of ore staying elevated, the cost pass-through mechanism is disrupted. As a result, trading activity remains thin, and the supply-demand tug-of-war is likely to persist in the near term.
Mixed trends in the stainless sector: Recent Sino-US tariff changes helped release some deferred demand, but overall activity stayed low due to the seasonal slowdown. Major steel mills in East China cut their bidding prices and lowered procurement volumes compared to last month, indicating weak end-user demand.
Retail buyers largely maintained a wait-and-see approach, while some suppliers have quietly started discounting, adding further downward pressure on prices. This cautious sentiment reflects the uncertainty prevailing in the downstream market.
Meanwhile, stainless steel producers are tightening cost controls, which has led to a reduced willingness to pay premiums for ferro chrome. This cautious procurement strategy is expected to keep ferro chrome prices under pressure in the near term.
Outlook
In the near term, the ferro chrome market is expected to remain weak yet stable. Supply support from high production costs will persist, while demand improvement remains limited. Prices are likely to fluctuate within a narrow range in the future.
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