Chinese ferro chrome prices remain stable on cautious market sentimen

Chinese high-carbon ferro chrome (Cr: 50%) prices remained stable this week, as the market adopted a wait-and-watch approach. Prices of high-carbon ferro chrome in China ranged between RMB 8,450-8,650/t ($1,190-$1,218/t). Meanwhile, for medium carbon ferro chrome, the prices stayed firm at around RMB 13,500-13,600/t ($1,901-$1,915/t). All listed prices include tax and are ex-works.

The ferro chrome market operated smoothly with average trading atmosphere and actual trading volume. Even though there haven't been many transactions this month, and the factory prices too stayed stable, and everyone waited to see how the new round of steel recruitment at the end of the month will go.

Similarly, the chrome ore market also performed relatively well. Even though the ferro chrome market did better, the ferro chrome plants were still buying what they really need. Plus, a lot of cargo ships arrived at the port this month, so there were a lot of chrome ore in stock. With more supply, the price of chrome ore might go up.

However, the stainless steel market did not function well this week because of poor demand. The trading atmosphere remained firm, and the actual trading volume went down. Stainless steel entered its slow season, so even though steel mills reduced production, there was still sufficient supply. Traders looked for orders, but they can't really change the price because of the costs involved.

Hainan West Asia Group predicts that as the end of the month approaches, everyone is waiting for what will happen to the broader steel market, so the ferrochrome market may remain stable in the short term.