- Chrome ore supply improves, coke costs support prices
- EU duty review weighs on export momentum
CBC: High-carbon ferro chrome prices stayed stable on balanced supply-demand and steady mill procurement, while low- and medium-carbon grades strengthened on firm special steel demand. Improved chrome ore supply, firm Turkish offers, and rising coke costs underpin the market, while export sentiment stays cautious ahead of the EU’s anti-dumping duty review.
High-carbon ferro chrome prices went up slightly by RMB 100/t ($14/t) w-o-w at RMB 7,740-8,150/t ($1,077-1,135/t) exw, including taxes.
Medium-carbon ferro chrome prices edged up by RMB 200/t ($28/t) w-o-w at RMB 13,100-13,300/t ($1,824-1,852/t) exw, including taxes.
Market recap:
Improved transport boosts chrome ore supply: Transportation efficiency at South Africa’s major chrome ore mines has improved, while Turkish export offers remain firm. Rising coke prices, supported by the steel industry’s demand recovery, have provided a cost floor for ferro chrome production.
Meanwhile, market attention has shifted to Indonesia’s potential changes in export policy for nickel and chromium products, which could indirectly impact ferrochrome raw material trade flows.
Export sentiment cautious amid EU review: Stainless steel producers are increasingly favouring low- and medium-carbon ferro chrome, driven by rising demand for stainless steel sheets in the automotive sector.
Demand for high-carbon ferro chrome has also picked up with the recovery in machinery manufacturing orders, while the building materials sector remains stable. The completion of raw material stocking for a large special steel project in Guangdong may ease procurement pressure in the near term.
On the export front, the market is awaiting the EU’s preliminary decision on China’s ferro chrome anti-dumping duties. With the outcome still unclear, traders are largely maintaining a cautious, wait-and-see stance.
Outlook:
In the short term, high-carbon ferro chrome prices will remain range-bound, with close attention to the bidding trends of major steel mills. Medium- and low-carbon grades will retain upward momentum on firm demand from the automotive and special steel sectors, while the EU duty review will keep exports in a wait-and-see mode.
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