Ferro Chrome Price In China Market & Trend Analysis

The Low Carbon Ferro Chrome Price in China Market

Low carbon ferro chrome in South China (Jiangsu, Zhejiang, Fujian, Sichuan, and Hunan) in August was 77.78% (18 factories were counted, and 14 started operations), a month-on-month increase of 16.67% %; production capacity released 27.85%, a month-on-month increase of 2.18%; the expected output is 11,500 tons, a month-on-month increase of 0.09 million tons.

low carbon ferro chrome price
LC ferro chrome price

In August, the price of low-carbon ferrochrome continued to rise, the profitability of factories improved, and the enthusiasm for production was boosted. After the end of the Universiade, factories in Sichuan resumed production one after another, and a factory in Fujian also restarted production, so the operating rate increased significantly. However, due to power supply and high temperature weather, it is difficult for the low-carbon ferrochrome factories in the south to maintain full production, so the capacity release rate and output are lower than the constant level.

High Carbon Ferro Chome Price in China Market

high carbon ferro chrome price
HC ferrochrome price

The price of high-carbon ferrochrome rose by 50-100 yuan/50 basis tons today. With the launch of a new round of chrome ore futures transactions, the cost of high-carbon ferrochrome smelting continues to rise, and factory quotations “go up when all boats go up”. At present, the transaction situation of high-carbon ferrochrome is gradually divided, and the rigid demand of stainless steel plants is clear. In particular, some steel plants in South China have strong demand for raw materials. The purchase price has also been continuously pushed up, and the price difference between the north and the south of ferrochrome has widened again. However, as far as the retail market is concerned, since the cumulative increase in this round of iron prices has reached 500 yuan/50 basis tons, it will take time for the downstream to digest, and traders have a certain profit-taking sentiment. The market has brought news of the long-short game. Although the purchase price increase of high-carbon ferrochrome by mainstream steel mills in September has gradually become an industry consensus, it is still unclear whether the increase can match the retail end. Therefore, some downstream and middlemen choose to wait and see the market cautiously.

Ferro Chrome Price Trend

After mid-August, the rise in the prices of chrome ore and coke led to a firmer iron price, and high-chromium and low-priced sources withdrew from the market. At the end of the month, the increase in domestic production did not meet expectations, and the import volume of high-carbon ferrochromium also dropped significantly. The price of stainless steel continued to rise, which was good for upward transmission. The activeness of the investment atmosphere has increased, and the price of ferrochrome has risen steadily and slightly.

Domestic stainless steel manufacturers have increased demand for raw materials, further pushing up the price of ferrochromium.

Chrome Ore Market Prices & Industry News – 16th August 2023

chrome ore price effect the ferro chrome price

Chrome Ore inventory at Chinese ports, as reported on August 14, shows that the total volume stands at 2,280,000 tons, and the entire Chrome Ore inventory is up 145,000 tons from the previous week. South Africa accounts for 85.3% of the total stock in Chinese ports, indicating its significance as a Chrome Ore supplier.

The sea freight rate of Chrome Ore bulk cargo from South Africa to China’s main ports on August 14 remains stable at $22-$27 per ton, and container ocean freight is $25-$28 per ton.

price chart of chrome concentrate in South Africa 
Chrome ore price effect the ferro chrome price

Furthermore, Statistics South Africa reported a 2,5% increase in manufacturing output which is the second successive annual gain in industrial activity. This growth suggests that industrial activity has been on the rise for two consecutive years, which can have various positive implications for the economy. An increase in manufacturing output often signifies higher production levels, job creation, increased demand for raw materials, and potentially improved economic conditions overall.

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