- High-carbon ferro chrome prices decline amid ample supply
- Weak chrome ore demand limits cost support
China’s ferro chrome prices showed a mixed trend during the assessment week. High-carbon ferro chrome (Cr:50%, C:6-8%) fell by RMB 100/t ($15/t) w-o-w to RMB 7,890-8,100/t ($1,177-1,208/t). Medium-carbon ferro chrome (Cr:60%, C:1%) remained unchanged at RMB 12,400-13,100/t ($1,850-1,954/t), while low-carbon ferro chrome (Cr:60%, C:0.1%) also held steady at RMB 14,200-14,500/t ($2,118-2,163/t).
The market remained weak as ample supply and cautious stainless steel procurement continued to weigh on prices. Maintenance at some Inner Mongolia plants provided limited supply relief, but high operating rates and expected new capacity in the fourth quarter kept the overall supply situation loose. Rising chrome ore and coking coal costs also squeezed smelter margins.
Market updates
Weak ore market limits cost support: Chrome ore prices remained under pressure as port inventories stayed high and overseas futures lacked upward momentum. South African and Turkish suppliers resisted significant price cuts, but weaker ferro chrome procurement continued to pressure ore prices.
Weak downstream demand weighs on prices: Stainless steel mills remained cautious, with small, need-based purchases and continued pressure on high-priced ore. Sluggish transactions and weak steel mill tender signals continued to weigh on ferro chrome demand.
Outlook
China’s ferro chrome prices are expected to remain weak and range-bound in the short term. High supply and weak demand will limit upside, while rising costs and production cuts should restrict downside.
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