China: Ferro chrome prices ease w-o-w amid weak demand

• Weak tender activity, ample mill inventories pressure prices
  
  
• Chrome ore prices elevated amid firm overseas supplier offers
  
  

Chinese ferro chrome prices declined by RMB 100/t ($15/t) w-o-w across segments, with high-carbon (Cr 50%, C 6-8%) at RMB 8,490-8,900/t ($1,245-1,304/t), medium-carbon (Cr 60%, C 1%) at RMB 13,300-13,500/t ($1,949-1,978/t), and low-carbon (Cr 60%, C 0.1%) at RMB 14,000-14,300/t ($2,051-2,095/t), exw including taxes.

Chinese ferro chrome prices declined slightly, as weak downstream demand and cautious market sentiment offset firm chrome ore costs.

Market updates

Firm ore costs support market sentiment

Chrome ore prices remained elevated despite slight spot corrections, supported by firm overseas supplier sentiment and high mining and logistics costs. Producers maintained firm offers, with limited willingness to reduce prices, even as expectations of production cuts at some plants weighed on sentiment.

Weak demand keeps trading subdued

Downstream stainless steel demand remained cautious, with mills holding sufficient inventories and continuing need-based procurement. Weak tender activity and soft finished steel demand limited transactions, keeping overall market activity subdued.

Outlook

Ferro chrome prices are likely to remain stable with slight downside risk. While elevated chrome ore costs will continue to provide support, weak demand and cautious procurement are likely to cap any meaningful upside.

(With inputs from CBC)