Output of Low Carbon Ferro Chrome In China
From January to June 2023, China’s low carbon ferro chrome output was 250,300 tons, a year-on-year decrease of 50,400 tons, or a year-on-year decrease of 16.76%. Among them, the top ten enterprises in terms of output have produced a total of 189,600 tons of low-carbon ferrochrome, accounting for 75.75% of the total output.
|LC Ferro Chrome Manufacturer||Output Jan to June 2023 (tons)|
|Inner Mongolia Sunrise||28900|
|Zhenxin Metallurgical Materials||6400|
Zhenxin Metallurgical Materials is the manufacturer of ultra low carbon ferro chrome and nitrided low carbon ferro chrome. The Carbon content is below 0.1%.
Low carbon ferro chrome lumps account for the main share. Low carbon (size:10-60mm) is mainly used in the production of stainless steel.
Low carbon ferrochrome powder and high carbon ferrochrome powder are mainly used to produce stainless steel or flux-cored welding wire.
Ultra Low Carbon Ferro Chrome Specification
|Ultra LC FeCr||Cr||C max||Si max||S max|
|Ultra LC FeCrC0.1||60-75||0.1||1.5||0.05|
|Ultra LC FeCrC0.06||60-75||0.06||1.5||0.05|
|Ultra LC FeCrC0.03||60-75||0.03||1.5||0.05|
Low Carbon Ferro Chrome Price in Chinese Market
- In the second half of the year, new production capacity for high-carbon ferrochrome was intensively put into operation, mainly in northern production areas. The reduction of stainless steel production in Indonesia, inflation and energy problems in Europe, weakening demand for ferrochrome, and the planned commissioning of a new high-chromium project in Qingshan. From the perspective of supply and demand fundamentals, supply pressure is relatively high, and the involution of the high-chromium industry will become increasingly intense.
- Ferro chrome production is developing in the direction of large-scale and clean production. As the sintering process gradually becomes popular, the dependence on South African chrome concentrates further increases. Since the main pricing power is controlled by the mines, and the growth rate of chrome ore consumption is higher than the growth rate of production expansion, the profit margin of the factory will continue to be affected by the ore price in the second half of the year and will be difficult to open.
- The expectation of strong consumption of stainless steel has not yet been realized, the profits of steel mills have dropped significantly, and the launch of new production capacity has been slow. Due to the decline in market sentiment, stainless steel inventory accumulation occurs from time to time, which has limited effect on raising raw materials.
- In order to strive for more sales opportunities, ferrochrome factories may continue to directly trade with terminals without intermediaries. The market share of dealers will continue to shrink, and the difficulty of operation will continue to escalate.
- Due to strong rigid demand and foreign businessmen also intending to control prices and shipments, chrome ore inventories will be difficult to return to high levels in the short term, and ore prices will continue to form cost support for iron prices.