China: Ferro chrome prices stable w-o-w amid firm raw material costs

• Environmental curbs tighten raw material supply
• Policy expectations support stainless steel demand

China ferro chrome prices continued to remain stable over the week. High-carbon ferro chrome (Cr: 50%; C: 6–8%) prices stayed unchanged at RMB 8,490-8,900/t ($1,221-1,293/t) exw, including taxes. Medium-carbon ferro chrome (Cr: 60%; C: 1%) prices also remained steady at RMB 12,900-13,100/t ($1,855-1,887/t) exw, including taxes.

Meanwhile, low-carbon ferro chrome (Cr: 60%; C: 0.1%) prices remained stable at RMB 13,600-13,900/t ($1,956-1,998/t) ex-works, including taxes.

Ferro chrome prices in China held steady amid firm raw material support, though cautious downstream demand and limited spot transactions continued to cap market activity.

Market updates

Raw material market sentiments

Chromium ore prices remained firm, supported by tight availability in major producing regions such as South Africa, which prompted traders to restrict sales and maintain price levels. Although import costs were impacted by exchange rate fluctuations, overall cost support remained strong.

Environmental policies constrained mining and transportation, leading to limited raw material supply. Rising costs were passed on to ferro chrome producers, resulting in margin pressure. However, producers continued operations by optimizing production.

Meanwhile, market sentiment remained mixed over post-holiday trends, with some traders adopting a cautious stockpiling strategy.

End-user market sentiments

The stainless steel industry maintained stable production, supported by moderate winter stocking demand. Steel mills mainly relied on long-term procurement contracts, which kept spot market transactions limited.

End-user demand remained subdued amid weak macroeconomic conditions, but underlying rigid demand helped stabilize the market

Policy expectations of higher infrastructure spending and a recovery in manufacturing supported stainless steel demand. Overall, market sentiment remained cautious, with downstream buyers purchasing only on a need basis.

Outlook

Ferro chrome prices are expected to remain stable, supported by firm raw material costs, while weak demand and cautious buying are likely to limit any upside.

(With inputs from CBC)