This week the price of HC ferrochrome continued to weaken and underwent a cumulative decline of around RMB 1,000/t ($153.35/t) since mid-March, blunted by the weighing pressure from tender prices of stainless mills, somewhat alloy oversupply and short of cost support from chrome ores. The market is dominated by pessimistic sentiments and no supportive elements are available in the short term.
Currently, the mainstream prices of HC ferrochrome in northern China’s Inner-Mongolia stands at RMB 7,600-7,800 ($1,165-1,196/t) on HC 50%, ex-plant including tax; while the same in South China’s Sichuan is at RMB 7,700-7,900 ($1,181-1,212/t); Zhejiang and Shanghai saw prices at RMB 7,900-8,100 ($1,212-1,242/t) delivered including tax. Just within this week, the price decline reached RMB 300/t for HC50%.
With the ferrochrome prices falling down, the chrome ore prices are also dented by RMB 3/dmtu from Apr with 40-42% SA concentrates coming down to RMB 25-27/dmtu ($157-170/t) which compared with the RMB 33-35/dmtu ($ 172-183/t) seen in early March, has come down by RMB 8/dmtu; This is echoed with the decline of the overseas market to $140-145/t for containerized concentrates.
At the beginning of this week, the new round of HC ferrochrome tender prices further slipped to RMB 8,000 ($1,227/t) for HC 50%, delivered, while some mills even dialed price to RMB 7,900 ($ 1,211/t), a decline of RMB 1,250/t ($192/t) for HC 50%, compared with the level in March. This however comes as no surprise, as the retail price has already slipped to RMB 7,700-7,800 ($1,181-1,196/t) amongst some sell-off sellers.
Meanwhile, both the domestic and overseas ferrochrome prices went downhill and stainless-steel market also went south continuously, resulting in somewhat reduced demand and more fierce competition for market share, further amplifying the bearish elements.
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