Outlook for China’s high carbon ferrochrome in March

The price of high-carbon ferrochrome rose slightly in February. As of March 8, the cash ex-factory price including tax for Inner Mongolia's high-carbon ferrochrome natural blocks was 1,198-1,212 USD/50 basis tons. The average price of high-carbon ferrochrome remained stable during the month. Affected by the Spring Festival holiday in February, stainless steel production fell further to 2.6077 million tons, and demand for ferrochromium also shrank. Ferrochromium production has dropped to 591,800 tons as some ferrochrome manufacturers continue to be upside down, and the supply level is still high. Although the retail price of ferrochrome remains stable due to cost support, the transaction volume remains deserted. 

Hainan West Asia predicts that the price of high-carbon ferrochrome in March will be easy to rise but difficult to fall. The increase in stainless steel production schedule was obvious in March, and there may be a small supply gap under the current expected output of ferrochromium. Although steel mills have sufficient raw material inventories in the early stage, ferrochromium will not become a limiting factor in increasing stainless steel production in the short term. However, if stainless steel maintains high production schedules, the problem of ferrochromium oversupply will be reversed. In addition, due to high costs, the profits of iron plants are meager, and even the southern iron plants are often in a cost inversion. With high ore prices, ferrochrome prices are easy to rise but difficult to fall.

For more information on ferroalloy price trends and market conditions, please contact Hainan West Asia Group.