- Rising coke prices push up production costs
- Limited stock levels continue to weigh on prices
CBC: Chinese ferro chrome prices rose slightly as higher coke costs and slower production recovery in northern regions tightened spot supply. Traders remained cautious on high prices, while steel mills sustained raw material procurement amid a rebound in stainless steel production schedules. Despite stronger bullish sentiment from black futures, trading was largely limited to long-term orders.
High-carbon ferro chrome prices edged up by RMB 100/t ($14/t) w-o-w at RMB 7,640-8,050/t ($1,063-1,121/t) exw, including taxes.
Medium-carbon ferro chrome prices also went up slightly by RMB 100/t ($14/t) w-o-w at RMB 12,800-13,000/t ($1,782-1,809/t) exw, including taxes.
Market recap:
High coke prices lifts smelting costs: Chrome ore prices remained stable, supported by firm South African quotations and high port inventories, though traders were reluctant to sell. The fourth round of coke price hikes had pushed up ferro chrome smelting costs, bringing some factories spot profits close to break even.
Overseas ferro chrome imports had fallen sharply y-o-y, especially from Kazakhstan, further widening the domestic high-carbon ferro chrome supply gap. While raw material cost pressures were evident, limited downstream acceptance of high prices continued to leave manufacturers facing both cost inversion and weak price support.
seasonal slowdown crubs end-user consumption:The stainless steel sector showed marginal improvement as the demand, and crude steel production rose m-o-m in August, though terminal consumption remained constrained by the construction industry’s seasonal slowdown.
Special steel producers adopted varied bidding strategies.one major steel mill cut high-carbon ferro chrome purchase prices, reflecting a cautious market outlook, while some mid-sized mills raised prices slightly due to the demand for replenishment.
Overseas tariff policy adjustments pressured ferro chrome exports, prompting some producers to shift to domestic sales, intensifying market competition. Downstream processors maintained low inventory levels, keeping spot ferro chrome prices under pressure.
Outlook
In the short term, ferro chrome prices may stay range-bound with strong volatility, supported by costs and supply constraints, though limited demand will cap further gains.
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