The price of HC Ferro Chrome is lowered by 100 Yuan / 50 base tons by one of the major producers, Bao Steel in China. Currently, the price offered in the mainstream market is 6000/ 50 base tons. The Chrome alloy market lacked momentum, as the Ferro Chrome producers started aggressive competition for selling the material and they started to rush for shipping. Moreover, the prices of Stainless Steel are continuously refreshing and going downstream as the supply and demand both remain weak; this naturally makes the Ferro Chrome market difficult to improve. Under the influence of downstream market and the price drop atmosphere, the sales are quite difficult to achieve. However, reduction in the tender prices has not affected the market in any significant manner as the strong bearish sentiment remains prevalent and the inquiries and the physical transactions all remain deserted.
| Operating Rate and Production Statistics of HC Ferro Chrome Plants | ||||||
| Region | Operating Rate | M-o-M (%) | Production Capacity | M-o-M (%) | Expected Output | M-o-M (%) |
| Guizhou | 50 | 12.5 | 46.63 | 11.09 | 3.87 | 0.95 |
| Gansu | 58.33 | -8.34 | 28.47 | -2.94 | 2.52 | -0.26 |
| Guangxi | 72.73 | – | 62.36 | -6.18 | 3.33 | -0.21 |
| Qinghai | 58.33 | -8.34 | 28.47 | -2.94 | 2.52 | -0.26 |
| Xinjiang | 58.33 | -8.34 | 28.47 | -2.94 | 2.52 | -0.26 |
| others | 47.37 | -5.26 | 33.52 | -1.95 | 5.33 | -0.31 |
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Steel Mill Tender |
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|
Steel Mill |
Product |
Price |
| Taigang | High carbon ferrochrome | 6500 |
| Castle Peak | High carbon ferrochrome | 6396 |
| Baosteel Desheng | High carbon ferrochrome | 6400 |
| Wine steel | High carbon ferrochrome | 6350 |
| Lianzhong | High carbon ferrochrome | 6400 |
| CITIC Pacific | High carbon ferrochrome | 6750-6850 |
| Yuan Li | High carbon ferrochrome | 6660 |
| Hegang (Group 2) | High carbon ferrochrome | 6850 |
| Hegang (set of) | 7050 | |
| Xiangtan Iron and Steel | High carbon ferrochrome | 6800 |
| Fujian Sangang | High carbon ferrochrome | 6830 |
| Ma Steel | High carbon ferrochrome | 7100 |
| Valin steel pipe early | High carbon ferrochrome | 6818 |
| Kungang | High carbon ferrochrome | 6900 |
| Hualing Steel Pipe Mid | High carbon ferrochrome | 6682 |
Chrome Ore:
Prices of Chrome ore fell significantly last week by almost USD10/MT since the decline was more pronounced, it affected the price of chrome ore futures in most countries which also continued to fall slightly by USD 5/MT. As the alloy market is soaring down, there is strong weakening trend in the market and therefore, the Chinese industry remains bearish and is cautious about any purchases in recent days. Since previous month, the procurement of Ferro Chrome remained slow and the transactions are gradually weakened. Although, with the prices going down in the last week, many traders and alloy manufacturing units showed interest in purchasing Chrome Ore; however, the fear of Prices going down is overwhelming. Therefore the market situation didn’t improve despite lower prices. Overall, there is a notion in the market that will the falling stainless steel prices, the prices of Chrome ore may also fall further in the coming weeks.
|
Product |
CIF price (USD/dmtu) |
|
| RSA Concentrates 40-42% | Bulk | 130-135 |
| Container | 120-125 | |
| RSA Concentrates 42-44% | Bulk | 150-155 |
| Packing | 140-145 | |
| RSA lumpy 38% | 135-140 | |
| RSA ROM 40-42% | Bulk | 150-155 |
| Turkey concentrates 46-48% | 210-215 | |
| Turkey block mine 38-40%% | 185-190 | |
| Iran lumpy 40-42% | 170-175 | |
| Pakistan lumpy 40-42% | 185-190 | |
| Albania lumpy 40-42% | 220-225 | |
| Zimbabwe Concentrates 46-48% | 195-200 | |
| Zimbabwe lumpy 40-42% | 170-175 | |
| Oman lumpy 34-36% | 140-145 | |
| Madagascar block mine 38-40% | 155-160 | |
| Madagascar concentrate 46-48% | 185-190 | |
This week the prices of Ferro Chrome continued to be in the downtrend and the market sentiments don’t seem to improve. Due to the confluence of various negative factors, the bearish sentiment grew stronger and the transactional market remained quiet. Therefore, it is expected that the market is bound to be under pressure in the coming weeks.
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