China: Ferro chrome prices remain stable w-o-w amid weak stainless steel demand

• Higher chrome ore prices provide cost support
  
  
• Increased cost pressures keep output in check
  
  

CBC: The Chinese ferro chrome market remained largely stable w-o-w, supported by high chrome ore costs. However, weak demand in the stainless steel sector and cautious procurement exerted downward pressure on prices.

High-carbon ferro chrome prices remained stable w-o-w at RMB 7,790-8,200/t ($1,081 - $1,138 /t) exw, including taxes.

Medium-carbon ferro chrome remained unchanged w-o-w at RMB 12,400-12,600/t ($1,721-1,748/t) exw, including taxes.

Market recap

FeCr market holds firm w-o-w: The domestic high-carbon ferro chrome market remained stable w-o-w, with minimal price fluctuations and light trading activity. While tighter supply and higher chrome ore prices offered some upward pressure, the weak performance of the downstream stainless steel market and a cautious approach from traders limited any significant price rise.

Demand from stainless steel makers remains soft: The stainless steel sector remained weak, resulting in cautious ferro chrome procurement. Stainless steel manufacturers continued to prioritise price reductions in their ferro chrome purchases.

Notably, stainless steel manufacturers have been prolonging their raw material inventory cycles and enforcing stricter cost controls, leading to lower acceptance of higher premiums and limited price growth.

Cost pressures curb ferro chrome production:Meanwhile, high chrome ore prices and tight port inventories continued to provide cost support to ferro chrome prices. However, due to muted demand, prices could not be raised to alleviate the persistent cost pressure. This affected ferro chrome producers, especially small and medium-sized manufacturers, resulting in slower raw material replenishment and dampening their willingness to resume production.

Outlook

The ferro chrome market is expected to remain weak in the near term, as traders and manufacturers maintain a cautious stance. Although recent tariff policies may benefit the market in the long term, subdued demand and a pessimistic outlook will likely limit any near-term price recovery.