Price of Ferro Chrome
The price of high-carbon ferrochrome was continuously falling in October, with a cumulative decline of 400-450 yuan/50 basis tons.
Affected by the National Day holiday, most ferrochrome demand was postponed until after the holiday. However, the market was weak after the holiday.
First, the price of finished steel products continued to fall, and steel mills’ production cuts expanded, resulting in lower raw material market prices.
Then the price of chromium ore dropped, and the cost support for ferrochromium weakened, making it difficult for factories to ship goods, so they could only lower prices to seek orders. However, even this did not reverse the weakening of ferrochromium prices. At the end of the month, as the supply of high-carbon ferrochromium exceeded a new high and downstream steel mills reduced production, the price of high-carbon ferrochromium continued to fall.
The Output of Ferro Chrome on China Market
In October 2023, the output of high carbon ferro chrome in China market was 700,400 tons, an increase of 35,500 tons from 664,900 tons in September, a month-on-month increase of 5.34%, and a year-on-year increase of 48.48% (output in October 2022 was 471,700 tons). From January to October 2023, China’s high-carbon ferrochromium production totaled 6.0434 million tons, a year-on-year increase of 12.21% (from January to October 2022, the production volume was 5.3857 million tons).
In October 2023, the output of low carbon ferro chrome in China market was 54,800 tons, an increase of 2,000 tons from 52,800 tons in September, a month-on-month increase of 3.79%, and a year-on-year decrease of 3.52% (output in October 2022 was 56,800 tons). From January to October 2023, China’s low-carbon ferrochrome output was 454,800 tons, a year-on-year decrease of 4.67% (the output from January to October 2022 was 47.71 tons).
The Price of Low Carbon Ferro Chrome Fell Sharply
The price of low-carbon ferrochrome fell sharply this month, with the cumulative decline ranging from 800 to 1,200 yuan/60 basis points. At the beginning of the month, the overall transaction pace of the market slowed down compared with before, and prices began to fall slightly. The inability to continue to follow up on demand and the correction in costs gave downstream buyers reasons to lower prices. In addition, there is always a large gap between the retail quotations of large factories and other factories, increasing the low-carbon carbon footprint. Ferrochromium transaction difficulty. The decline in iron prices has accelerated since the middle of the year. The new round of bidding prices of steel mills has been significantly lowered, which has formed a negative guidance for the market. After the price fell, the purchasing mentality of the low-carbon ferrochromium market became more cautious, thus entering a “vicious cycle” of transactions. middle. However, factories have basically given up their previous profits, and some factories in the south are already close to the cost line. It is expected that there will be little room for a substantial reduction in iron prices in the future.
The Ferro Chrome Buyer
Stainless steel prices fluctuated downward this month. Affected by macro and spot inventory after the holiday, prices fell. In the middle of the year, steel mills successively announced production reduction plans. Prices rebounded, but the support was relatively limited. Then prices fell back. At the end of the month, trillions of national debt supported post-disaster reconstruction. The macro fermented, but the manufacturing PMI in October fell back, long and short intertwined, and the price fluctuated. At present, the cost of stainless steel remains high, and the cost is still supportive of the price. However, the off-season is approaching, and downstream demand is limited. In November, steel mills will intensify production cuts, production schedules will continue to decrease, and the risk of downward price fluctuations in raw material prices will increase. Stainless steel prices are expected to fluctuate in the near future. The probability of weak operation is higher.
Ferro Chrome Price Outlook
As the purchase price of high-carbon ferrochrome by mainstream steel mills fell by 300 yuan/50 basis tons in November, ferrochrome faced industry-wide losses. Most factories in the south have plans to reduce or suspend production. However, steel mills continued to implement production reductions in November. In the short term, The contradiction between supply and demand and cost is still prominent, the market lacks positive factors to stimulate, and iron prices may continue to be weak.