Low Carbon Ferro Chrome Price at The Beginning of 2024 in China

Low Carbon Ferro Chrome Price Feb 20, 2024

FeCr C0.2514900-15400 (60basis, EXW)  
FeCr C0.115100-15600 (60basis, EXW)
FeCr C0.0615400-16000 (60basis, EXW)

The price of low carbon ferrochrome in the Chinese market dropped by US$10-15 per ton.

Affected by the Spring Festival holiday, domestic steel mills had sufficient stocks before the year, and the domestic trading volume of low-carbon ferrochrome dropped significantly. The price of ferrochrome shot up before the holiday. After the holiday, due to high demand, the transaction could not be effectively followed up, and the factory signed orders in the early stage. Execution is about to be completed.

low carbon ferro chrome price

The pre-sales of domestic ferrochrome orders in March were poor. In addition, low-cost sources held by dealers were put on the market, which increased the difficulty of overall shipments. Therefore, some factories with a slight cost advantage began to choose to ship at a discount.

Although the price of silicon-chromium alloy has been reduced by 200-300 yuan/ton, the price of high-grade chromium concentrate has increased by 2 yuan/ton compared with before the holiday. The cost increase and decrease are almost offset by the same amount. The fall in iron prices actually squeezes the factory’s own profit margin. The supplier of high-grade chromium concentrate still intends to increase the quotation, so the factory is in a particularly embarrassing situation at this stage.

The southern low-carbon ferrochrome plants that were suspended for maintenance during the Spring Festival began to resume production after the holiday. The northern plants continued to maintain normal production status. However, due to the Spring Festival, there was a consumption window of more than 20 days for downstream consumption. The current market situation has changed from the previous “hard to find goods” “The supply has changed to be slightly looser, and the intensity of support for prices has decreased. However, under the constraints of high ore prices, the room for adjustment of iron prices is limited.

The Outlook of Low Carbon Ferro Chrome Price

Due to the Chinese New Year holiday, the export of low-carbon ferrochrome was stagnant for about 10 days. It will take time to execute old orders and sign new orders. During this period, most foreign customers were bearish on ferrochromium prices after the holidays, and many customers have been waiting and watching recently.

Delays in export orders, domestic orders have led to ferrochrome producers pushing down their profits. However, as chrome ore prices rise, the cost of low-carbon ferrochrome rises. After the holidays, low-carbon ferrochrome and micro-carbon ferrochrome manufacturers gradually resumed production, but heavy snowfall in production areas and key trading areas caused traffic congestion. The heavy snow will last for about a week, and most orders placed before the holiday are delayed in shipment. Therefore, the slight decrease in the price of low-carbon ferrochrome is temporary. The later price trend will depend on domestic production and chromium ore prices.

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