Ferro Chrome

This month, the price of high-carbon ferrochrome “rose first and then fell”, with an overall fluctuation range of 50-100 yuan/50 base tons. At the beginning of the month, the external market of chrome ore continued to rise strongly. Driven by the cost, the price of ferrochrome closer to the high price, but due to the lack of transaction, the actual increase in ferrochrome prices lagged slightly. Since the middle of the month, due to the continuous decline in the stainless steel market, the industry sentiment has become cautious, the rise in the market of chromium products has slowed down, and the actual orders have only been carried out around rigid demand. At the end of the month, the purchase price of mainstream steel mills continued to be determined at a flat price. Coupled with the news of downstream production cuts, the market lacked positive drivers, and the retail market was slow. The high price of ferrochrome fell slightly, but due to cost factors, the supplier’s room for price concessions was limited, and the stalemate in the industrial chain was more significant.

Electrolytic manganese metal flakes

Imported Ferrochrome

    This month, the market trend of imported high-carbon ferrochrome was different. Among them, resources such as Zimbabwe and India had stable supply and slightly more cost-effective than domestic iron, and the market recognition and circulation rate increased. Following the mainstream market, it ushered in an increase at the beginning of the month, and then due to the overall reduction in transaction volume, the price was blocked and maintained stable operation. The ferrochrome market in Kazakhstan is not satisfactory. With the arrival of the off-season for downstream consumption, customers’ purchasing demand has weakened or they have chosen to use low-priced raw materials to reduce cost pressure, causing its price to soften slightly.

    Ferro Chrome Production

    According to website statistics, the national high-carbon ferrochrome production in June 2024 was 807,100 tons, a decrease of 11,200 tons from 818,300 tons in May, a month-on-month decrease of 1.37%, and a year-on-year increase of 31.71% (June 2023: 612,800 tons). From January to June 2024, the national high-carbon ferrochrome production totaled 4.3812 million tons, a year-on-year increase of 28.15% (January to June 2023: 3.4188 million tons).

    According to website statistics, the national low-carbon ferrochrome output in June 2024 was 61,000 tons, an increase of 8,000 tons from 60,200 tons in May, a month-on-month increase of 1.33%, and a year-on-year increase of 35.56% (45,000 tons in June 2023). From January to June 2024, the national low-carbon ferrochrome output was 335,500 tons, a year-on-year increase of 34.04% (January to June 2023: 250,300 tons).

    Low-carbon Ferrochrome Rose Slightly and Then Ran Steadily

      This month, the price of low-carbon ferrochrome rose by 200 yuan/60 base tons. The market at the beginning of the month was obviously dominated by costs. The price of chrome ore “took off” in an all-round way, and the high-grade chrome concentrate rose particularly rapidly. The unified quotation of the factory front line was uniformly raised, and the transaction atmosphere of low-carbon ferrochrome was improved. The bidding pricing of steel mills also gave price increase guidance, and the iron price rose naturally. After the middle of the month, the chromium market gradually stabilized. As buyers completed their stocking, market inquiries decreased, and the output of low-carbon ferrochrome remained at a high level. The market supply environment was loose, and actual transactions remained within the mainstream price range. High quotations were almost unpopular.

      Low Carbon Ferro Chrome Price Outlook

      At the beginning of this month, the mainstream system and high-grade chrome concentrate were driven by the rise of South African powder, and the obvious gap in port trade volume, and the upward trend was unstoppable. Iron prices continued to move closer to high prices under the support of costs. The port spot chrome ore rose by 1-3 yuan/ton. With the fluctuation of the stainless steel market in the middle of the month, the retail transaction of ferrochrome was not smooth. Industry insiders had different views on steel bidding prices, and the factory’s willingness to purchase raw materials became cautious. The rise in the spot price of chrome ore gradually slowed down. The trading atmosphere of chrome ore spot has become weaker. Although the overall quotation of traders is still mainly to maintain stability, the bargaining space has increased. This month, the price of chrome ore has increased by 5-20 US dollars/ton. As the consumption of chrome ore continues to remain high, foreign traders still have high confidence in chrome ore, and the futures quotation remains strong.

      Steel Plant Purchase Price

      Qingshan Group’s long-term purchase price of high carbon ferrochrome in June 2024 is 8995 yuan/50 basis tons (cash including tax to the factory price), which is flat compared with May. The price received at Tianjin Port is reduced by 150 yuan/50 basis tons, and the delivery period is before July 10, 2024.

      Shanxi Taigang’s purchase price of high carbon ferrochrome in June 2024 is 8795 yuan/50 basis tons (cash including tax to the factory), which is flat compared with May. The price is constant and the delivery period is before July 5.

      Baosteel Desheng’s purchase price of high carbon ferrochrome in June 2024 is 8995 yuan/50 base tons (cash including tax to the factory), which is flat compared with May.

      Downstream stainless steel market

      This month, the overall price of stainless steel fell compared with last month, and the production schedule of stainless steel continued to maintain a high position. Under the influence of the off-season, the terminal demand for stainless steel is limited, the transaction is general, the market continues to accumulate stocks, and the impact of the Indonesian nickel ore quota approval problem has subsided, resulting in the continuous decline of stainless steel prices in the middle and early weeks, and the spot price has followed the decline, and the market is bleak. In the second half of the month, the price of stainless steel fluctuated, the price of raw materials was relatively strong, and some steel mills arranged maintenance and production in July, and the price of stainless steel rebounded at the end of the month, but the spot transaction still did not show a significant improvement.

      Ferro Chrome Forecast for Next Month

      With the arrival of the consumption off-season, the terminal market is sluggish, and chromium products lack favorable boosts. Although both supply and demand sides have chosen to reduce production, the decline in demand is significantly greater. It is expected that transactions in the high-carbon ferrochrome retail market will become more difficult next month, and iron prices are likely to continue to weaken. Market pressure will gradually be transmitted from the downstream to the upstream raw materials such as chrome ore.

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