China: High raw material costs, but prices of ferrochrome remain firm

The price of ferrochrome in China remains stable, with high carbon ferrochrome (Cr: 50%; C: 6-8%) priced at 8600-8800 ￥/ton (1200-1220 US dollars/ton). The ferrochrome market is operating smoothly, and the trading volume is generally flat.

Due to the high prices of raw materials, the quotation of ferrochrome plants remains stable.

At the same time, the chromium ore market is stable and trading volume has increased. Due to the overall stable market, there is a need to replenish inventory. The recent typhoon has reduced the arrival volume at the port, leading to a shortage of spot supply. Due to limited supply, the traders provided a firm offer.

The stainless steel market is stable, but the trade volume has decreased. The recent rainstorm in North China and East China, as well as the restrictions of the Chengdu Universiade and ongoing maintenance on truck traffic in some areas, have affected the production of stainless steel.

Hainan West Asia Group expects that the price of ferrochrome may remain stable. The rise in prices of raw and auxiliary materials is squeezing manufacturers' profit margins. However, due to price fluctuations, manufacturers are cautious when purchasing raw materials