China: Ferro chrome prices soften slightly amid weak demand, firm ore costs

HC ferro chrome prices edge down w-o-w on weak buying

Firm chrome ore costs limit downside

Chinese high-carbon ferro chrome (Cr 50%, C 6-8%) prices edged down by RMB 100/t ($15/t) w-o-w to RMB 8,590-9,000/t ($1,260-1,320/t) exw, including taxes. Medium-carbon (Cr : 60%, C: 1%) prices remained stable at RMB 13,400-13,600/t ($1,965-1,995/t), while low-carbon (Cr : 60%, C : 0.1%) prices were unchanged at RMB 14,100-14,400/t ($2,068-2,112/t).

Overall, ferro chrome prices remained largely stable with slight downward pressure, as firm chrome ore costs offset weak stainless steel demand and cautious market sentiment.

Market updates

Chrome ore prices remain firm amid cost pressures

Chrome ore prices held steady at elevated levels, supported by firm overseas supplier sentiment and high mining and logistics costs. Producers maintained firm offers despite some correction in spot prices, while expectations of production cuts at ferro chrome plants weighed on sentiment.

Weak downstream demand limits market activity

Stainless steel demand remained subdued, with mills holding sufficient inventories and maintaining need-based procurement. Weak tender activity and cautious buying kept trading subdued, while broader end-use demand remained sluggish.

Outlook

Ferro chrome prices are expected to remain stable with slight downside risk in the near term. While elevated ore costs will continue to support prices, weak demand and cautious procurement may limit any upside.

(With inputs from CBC)