Low Carbon Ferro Chrome Price is Stable in China Market
With the Spring Festival holiday approaching, the low-carbon ferrochromium market will be closed, and the price will not fluctuate significantly. Current low carbon ferrochrome mainstream price (EXW VAT included) FeCr60C0.25 14600-15200, FeCr60C0.1 14800-15400, FeCr60C0.06 15100-15700.
When the new crown epidemic broke out in the middle and late December, factories generally shut down earlier, and transportation was greatly affected. The bidding of steel mills brings certain demand, but the demand is limited. The remaining factories mainly rely on long-term orders from customers, and there are fewer shipments of small orders.
As the bidding work before the Spring Festival comes to an end, market inquiries and purchases will decrease, and new demand for ferrochrome will come after the year. The cost of low carbon ferrochrome in the south is still firmly supported. Therefore, the low-carbon ferrochrome market is relatively stable before the Spring Festival.
High Carbon Ferro Chrome Price in China Market
According to online ferroalloy data, recently ordinary high carbon ferrochrome Si: 3.0max 8900-9200, High carbon Ferro chrome Si1.5max 9100-9300.
The Output of Silicon Chrome Declines
In January, the operating rate of China’s silicon-chromium alloy was 62.5%, a decrease of 4.17% from the previous month. It is estimated that the output of silicon chromium in January will be 29,100 tons, a decrease of 0,900 tons from the previous month.
In January, all silicon chromium plants in Sichuan were shut down. Silicon chromium producers in Shanxi, Inner Mongolia, Qinghai, and other places are in normal production, and some northern factories have increased their output. The overall output of silicon chromium did not change much.
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Chrome Ore Market Overview
Last week the price of chrome ore in Tianjin port rise. As the Spring Festival holiday approaches, the ferrochrome factory stops purchasing. The ferrochrome manufacturer in the South has been stopping production due to the high energy cost. The Ferro chrome manufacturer in the North is waiting and seeing, expecting the price of chrome ore to go down.
This week, chrome ore is raised by USD 5-15/ton CIF. The factory has confidence in the price of ferrochrome after the year, and the demand for chrome ore is high. Foreign suppliers know that the stock of chrome ore in domestic ports is low, and the demand is increasing, so the price is raised on the basis of last week. Superimposed on the continued depreciation of the RMB against the US dollar, domestic ferrochrome factories accept an increase in the purchase price of chrome ore. South African chrome ore is the most popular, and its price has risen sharply.
Ferro Chrome Price Trend
In China’s ferrochrome market, affected by the Spring Festival holiday, ferrochrome traders gradually left the market. The inventory cost of traders increased during the holidays, and the room for ferrochrome to rise after the year is limited, and the uncertainty of profitability increases. The cost of logistics and transportation has increased, vehicles are difficult to find, and most domestic and international orders are planned to be delivered after the end of the year.
Ferrochromium prices are firm despite the early departure of ferrochromium traders. Before the Chinese New Year, the output of ferrochrome in the south dropped sharply, and the northern market stepped up production in order to meet the demand for ferrochrome at home and abroad.
Due to the exchange rate, Chinese New Year factory holidays, and other reasons, it is difficult to purchase ferrochrome before the year. There are very few factories and traders in stock, and most of the common V10 low-carbon ferrochrome in the market need to be ordered for production. The supply of medium-carbon ferrochromium is insufficient, and orders have been arranged until the end of February 2023. The market price is higher than the known price.
Although ferrochrome producers and traders are full of confidence in the ferrochrome market after the festival. The production cost of ferrochrome also remains high, but the change in market demand for ferrochrome after the Lunar New Year is the key to determining the price of ferrochrome.