Ferro chrome prices in China are finding stability amid slow recovery of the stainless steel market. Prices for various grades were thus:
- High-carbon ferro chrome: Prices remained unchanged at RMB 8,650-8,850/t ($1,195-1,222/t).
- Medium-carbon ferro chrome: Prices hovered at RMB 13,800-13,900/t ($1,906-1,920/t), declining by RMB 200/t ($28/t). All prices are ex-works and include taxes.
Factors that contributed towards market consistency:
Hesitancy in acceptance of higher offers: The ferro chrome market has experienced some stability after a period of price drops. However, there was still some hesitation among downstream steel mills to accept the current prices. Despite increased inquiries and price discussions, actual transactions remained slow. With most steel mills biddings already concluded, the market overall lacked significant positive momentum.
Supply-demand dynamics of chrome ore market: Demand from ferro chrome plants was slow, with many plants adopting a wait-and-see approach. Pressure from high-priced chrome ore persisted, while supply of chrome ore remained relatively abundant.
In this scenario, chrome ore traders likely adjusted their prices slightly downward to stimulate transactions. This delicate balance between supply and demand will likely continue to influence market conditions in the near term.
Stainless steel market steady: The downstream stainless steel market exhibited stability with an average trading atmosphere. Despite recent gains in the stainless steel futures market and some improvement in downstream purchasing demand, transactions primarily comprised of sporadic orders. Merchants were able to secure certain profit margins upon completion of transactions.
However, most downstream players hold a bearish outlook on the market’s future trajectory.
Outlook
It is anticipated that the ferro chrome market will likely remain stable in the short term. This stability reflects the current dynamics within the industry, with various players adjusting their strategies accordingly.
Note: This article has been written in accordance with an agreement between CBC and BigMint.