According to the “FerroAlloys Online” report, after a stable week, the price of low carbon ferrochromium was lowered again. On May 31, the price was lowered by 100-200 yuan/ton, (50 base price). Current market price: C: 0.10 16300-16600, micro-carbon ferrochromium C0.06, 1600-16800.
At the end of May, China’s large domestic steel mills started bidding for low-carbon ferrochromium in June, and the purchase volume increased slightly compared with May. However, due to the oversupply of low carbon ferrochromium in China in May, the new round of bidding price competition is fierce. In addition, there are large traders who have a large supply of goods at low prices, and the low-priced stocks are circulating in the market, which has lowered the price of low-carbon ferrochrome. Nitrided ferrochrome Cr:60%, N:7-9%, (EXW ¥20000, 50basis)

With the sharp drop in the price of raw material silicon-chromium, the cost side has lost room for a sharp drop. Suppliers can only seek orders at reduced prices. Some factories suffered a small loss in order to maintain the company’s operation, while some factories chose to stop production after falling below the cost. However, poor terminal demand is the current status quo, and the price of low-carbon ferrochromium has maintained a weak and stable operation recently.

Mr. Zhang, an analyst at the Federation of Logistics and Purchasing, said that China’s PMI index rebounded in May, indicating that the impact of the epidemic has weakened significantly, the growth has stabilized, and the effects of various policies to protect people’s livelihood have begun to show. The full resumption of work and production has achieved obvious results, and the index of new orders and export orders has rebounded.
Region | Output | Increase | Operating rate |
Inner Mongolia | 29.96 | 5.48 | 81.48 |
Gui Zhou | 7.96 | 0.7 | 86.36 |
Si Chuan | 4.58 | 1.36 | 92.86 |
Guang Xi | 4.03 | -0.39 | 71.43 |
Others | 6.88 | 0.95 | 70.37 |
Chrome Ore Market
As the price of ferrochrome fell, the price increase of chrome ore weakened, and some chrome miners adjusted their prices according to the market. In the chrome ore futures market, miners kept prices high. Although the spot price of chrome ore fluctuated slightly, suppliers still have confidence in the market.

In April 2022, South Africa’s high-carbon ferrochromium exports totaled 277,000 tons, an increase of 10.1% month-on-month and a year-on-year decrease of 8.2%. Among them, 80,000 tons of high-carbon ferrochromium were exported to China, a decrease of 13.2% month-on-month and a year-on-year decrease of 24.7%. Among them, 121,900 tons of high-carbon ferrochromium were exported to Mozambique, an increase of 21.2% from the previous month. From January to April 2022, South Africa’s total exports of high-carbon ferrochromium were 1.113 million tons, a year-on-year decrease of 27.9%; of which 363,700 tons were exported to China, a year-on-year decrease of 26.1%. Exports to Mozambique amounted to 298,300 tons, an increase of 515% year-on-year.
Downstream Steel Mills
Affected by the epidemic in mid-May, stainless steel plants gradually reduced production, and stainless steel futures increased slightly due to this impact, but the spot market lowered prices due to lower raw material prices to facilitate transactions. At the end of May, the stainless steel market continued to be sluggish, there was no good news in the market, the actual transaction price continued to decrease, and end-users mostly chose to wait and see.
Steel Mill Tenders
Company | Price (¥) | Increase (¥) |
Tsingshan Group | 9645 | 650 |
Shanxi Steel | 9445 | 700 |
Baosteel | 9645 | 650 |
Ferrochrome Price Trend in June
China’s stainless steel output falls, and the demand for ferrochrome falls. It is expected that the price of ferrochromium may still decrease slightly in early June. While the price is close to the cost price, the price of ferrochromium will stabilize or rebound after the low-priced raw materials are consumed or the low-priced inventory in the hands of traders is reduced.
After the Chinese Dragon Boat Festival, the factory waits and sees the direction of national policies, so there is no major fluctuation in the quotation for the time being. The price of coke stopped falling and rebounded slightly. The price of chrome ore has been high for a long time, and the cost pressure of the factory is still relatively large. In addition, the factory in the south has reduced production and stopped production due to cost inversion, and the subsequent market has gradually stabilized.