Anaemic Trade for Chrome amid CNY with Unchanged Prices

 

[Ferro-Alloys.com]The holiday lasted for seven days in China during Chinese Spring Festival put the chrome market in silence as most ferrochrome producers and traders and chrome traders ceased their business activity in order to get ready for Chinese Lunar New Year. For tender prices of high-carbon ferrochrome from most of China’s major stainless steel makers remained the same as a month earlier, China’s domestic prices kept unchanged in February. Because most of China’s ferrochrome producers were busy producing for orders from the steel mills, which would be completed in early March, as a result, domestic high-carbon ferrochrome supply tightened in February, which lead to an increase in the high-carbon ferrochrome prices in the month. On the other hand, according to China Customs data, China imported more than 0.21 million tonnes of ferrochrome in January 2015, which remained a historical high level and put more pressure on domestic ferrochrome industry; China imported more than 0.77 million tonnes of chrome ore in January 2015, increased by 7%, which indicated a good sign for China’s chrome ore market.

 

As a result of short supply of high-carbon ferrochrome, producers raised their prices, but few transaction had been made, and the prices are supposed to be steady in the coming month. After the previous fall of low-carbon ferrochrome prices, the prices kept stable in February. As low-carbon ferrochrome stock slipped, the prices were seemingly to rebound and some low-carbon ferrochrome producers already raised their prices.

 

Most chrome ores remained stable in February expect there was a slight increase on South Africa concentrate price. Due to the unchanged high-carbon ferrochrome prices, spot chrome ore prices are supposed to be stable in near-term. Following the previous fall of futures chrome ore prices, the prices might also remain weak.

 

Merafe predicted that there would be an increase for global stainless steel output in 2015, which would lead to a growth in ferrochrome demand, and it would increase its output, which would hit China’s chrome market by its low production cost and large output volume. China’s steel industry are facing the increasing environmental costs, adding that the stainless steel prices kept falling in February, China’s chrome industry seemed to remain in a worrying situation before the rise of stainless steel prices.

 

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