High Carbon Ferro Chrome Price Analysis in 2023

High Carbon Ferro Chrome Price

In 2023, the price of chrome ore will remain at a high level for a long time, which provides a solid cost basis for ferrochrome and ensures the relative stability of ferrochrome prices. However, it is regrettable that most of the time, the increase in ferrochrome prices cannot fully cover the increase in chrome ore prices.

The relative increase in raw material costs has led to a decline in profits of ferrochrome production plants. In an increasingly competitive market, The factory’s profit margins have been severely squeezed.

Trend analysis of high carbon ferrochrome in 2023.

high carbon ferro chrome price

Taking the representative high-carbon ferrochrome in Inner Mongolia as an example, the market price has been fluctuating back and forth in the range of 8,350-9,300 yuan/50 basis tons, and the duration of the price band has been shortened. Overall, the average annual price reached 8,796 yuan/50 basis tons. Compared with last year, the average price per 50 basis tons increased by 207 yuan. It is worth noting that this price level has basically remained at a relatively high level throughout the year, highlighting the strong trend of the high-carbon ferrochrome market.

high carbon ferrochrome price

In the first quarter, as the epidemic gradually came under control, the market’s strong expectations for consumption recovery drove a positive start for the high-carbon ferrochrome market. Driven by the centralized stocking of downstream dealers and users, iron prices quickly climbed to the important mark of “9,000” yuan/50 basis tons. At the same time, the continued rise in chrome ore prices has also provided strong support for the high-carbon ferrochrome market, prompting it to continue to break upward. What is particularly noteworthy is that the bidding prices of large steel mills have increased for three consecutive months, with a cumulative increase of up to 700 yuan/50 basis tons, further boosting market confidence.

However, after entering mid-March, the end market began to show weakness, and the upward momentum of high-carbon ferrochrome prices was subsequently blocked. Due to the implementation of production cuts by steel mills, the supply pressure of ferrochrome has gradually increased. The strong expectations of the consumer market have failed to materialize, the price of ferrochrome has begun to decline, and the market has entered an adjustment stage.

In the second quarter, the ferrochrome market fluctuated significantly. In the early days, the large return flow of imported ferrochrome put considerable pressure on market prices, leading to a correction in iron prices. However, with the increase in the number of companies that have ceased production, the market supply and demand relationship has gradually been positively adjusted. Subsequently, driven by rising costs, iron prices increased significantly, and the market gradually regained its vitality.

Entering the third quarter, the recovery of the stainless steel market has brought positive signals to the ferrochrome market. Steel plant production schedules continue to remain at a high level, market demand has rebounded, and the market purchasing atmosphere has also strengthened. High-price transactions continued to emerge, and the price of high-carbon ferrochrome broke through the “9” mark again. However, the plunge in steel prices at the end of the quarter hit market confidence, and iron prices once again entered a correction channel.

In the fourth quarter, the large-scale new production capacity in the north gradually reached capacity, causing the ferrochrome market to show a pattern of “increasing supply and decreasing demand”. At the same time, cost support gradually weakened, and the decline in iron prices further expanded, reaching a year-end low of 8,350 yuan/50 basis tons in early November. However, affected by factors such as production cuts and power rationing at the end of the year, ferrochrome supply began to decline, and iron prices remained strong after a slight increase, providing strong support for the stable development of the market.

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