High Carbon Ferrochrome Price 2024 Price Analysis Chinese Market
High-carbon ferrochrome is a type of ferrochromium alloy with a carbon content of 4% to 8%. It is mainly used in the production of stainless steel and other industries. The price of high carbon ferrochrome has a significant impact on the steel market. This article mainly summarizes the overall price situation of high-carbon ferrochrome in China in 2024 based on some market literature.
In 2024, the price of high-carbon ferrochrome in China’s domestic market will generally show a trend of first stabilizing, then rising, and then falling. The specific analysis is as follows:
From the beginning of the year to March
From December 2023 to March 2024, the bidding prices of high-carbon ferrochrome for mainstream stainless steel plants have remained stable and at a low level for four consecutive months. The market has been relatively stagnant, and retail prices have remained unchanged for a long time.
April to July
In April 2024, Tsingshan Group announced its steel bidding price, which was significantly higher than market expectations by 500 yuan/ton. The price remained stable in the following four months. This move made the high-carbon ferrochromium market active.
August to December
Starting from August, the bidding price of high-carbon ferrochrome entered a downward channel, and by January 2025, it had dropped by a cumulative 2,000 yuan/ton. In December 2024, according to data from the Baotou Municipal People’s Government, the average price of high-carbon ferrochrome was 8,100 yuan/ton, a year-on-year decrease of 300 yuan/ton, or 3.6%.
Factors affecting high carbon ferrochrome price trends
On the supply side: High-carbon ferrochrome production will increase significantly in 2024, reaching a record high of more than 800,000 tons in June, with total annual production reaching 8.56 million tons, a year-on-year increase of 19.94%. Inner Mongolia’s output exceeded 6 million tons, a year-on-year increase of 34%. Due to factors such as low electricity costs, low logistics costs close to the port, advantageous coke supply, and government support, its output accounted for about 70%.
In addition, Tsingshan Group’s high-carbon ferrochrome project in Indonesia will be put into operation from the end of 2023 to 2024, partially replacing the demand for imported ferrochrome in domestic stainless steel production lines. However, China’s cumulative import volume of high-carbon ferrochrome from January to November 2024 still reached 339.8 million tons, a year-on-year increase of 12.54%.
On the demand side: Although the stainless steel output in 2024 is not as high as the 13% growth rate in 2023, it is still at a high level. It is expected to be close to 38 million tons, a year-on-year increase of 3%. The demand for high-carbon ferrochrome is still large, but social inventories are also gradually increasing. accumulation.
Cost: In the first half of 2024, supported by steel bidding prices, ferrochrome production profits were good. However, in the second half of the year, as the prices of raw materials such as chromium ore fell, the production costs of high-carbon ferrochrome also dropped, driving the price decline.
hign carbon ferrochrome price analyse 2025 in China
In the short term, due to limited demand, weakening cost support and downstream price pressures, prices are expected to remain weak and remain weak and stable before the Spring Festival. In the medium to long term, if demand in the stainless steel industry picks up or supply decreases, prices are expected to be supported, but it is unlikely to rise significantly until the relationship between supply and demand improves.
