Ferrochrome Price Per Ton Today
High carbon ferrochrome prices began to drop sharply in July, and the average price in Inner Mongolia dropped by RMB 1,900/t by the end of August. Prices began to recover in early September in China Market, and by September 15, the price of high carbon ferrochrome in Inner Mongolia was ￥7800 – 7850 yuan/ton, and in Guizhou, it was ￥7950 – 8000 yuan/ton.
Low-carbon ferrochrome (55% chromium) price continued to fall from May to August, and the price of low-carbon ferrochrome in Inner Mongolia dropped by RMB 5,000/ton from RMB 17,500/ton to 12,500/ton. Prices began to rebound in early September, and by September 15, the price of low-carbon ferrochrome in Inner Mongolia was 13,100-13,200 yuan/ton, and that in Jiangsu was 13,500-13,600 yuan/ton.
Micro-carbon ferrochrome (52≦Cr<60) price continued to fall from May to early September. The price of micro-carbon ferrochrome in Inner Mongolia dropped from 18,300 yuan/ton to 12,900 yuan/ton. On September 15, the price of micro-carbon ferrochrome in Inner Mongolia was 13,600-13,700 yuan/ton, and the price of micro-carbon ferrochrome in Jiangsu was 13,900-14,000 yuan/ton.
Reasons for the drop in ferrochrome price
Due to the power curtailment policy in the South and other reasons, the output of steel mills has declined, and the demand for ferrochrome has also declined. At the same time, the consumption of stainless steel was sluggish, and steel mills are reducing production due to losses, so steel mills are reluctant to buy high-priced raw materials, and demand for ferrochrome also fell in July. Some steel mills only maintain the purchase of long-term orders, and some steel mills even stopped the purchase of iron and chromium in August. Ferrochrome demand weakened further. In addition, mainstream steel mills have lowered their bid prices for high carbon ferrochrome, driving a corresponding drop in retail ferrochrome prices.
Reasons for the recent recovery in ferrochrome prices
- Many ferrochrome plants have previously announced plans to reduce production, and manufacturers have undergone major renovations, resulting in further reductions in ferrochrome production. As ferrochrome supply continues to decline, stainless steel production picks up in September, and the previous oversupply of ferrochrome is coming to an end.
- At present, there is a shortage of low-carbon ferrochrome available in circulation, and some factories have no goods for sale in September. In addition, the price of stainless steel continues to soar. These factors have led to an increase in the price of ferrochrome.
Ferrochrome Price Trend Forecast
Facing the continuous drop in ferrochrome prices, ferrochrome producers responded to losses and reduced production, and only maintained long-term orders for shipment. After two months of production reduction, the supply of ferrochrome has dropped significantly, and the inventory has run out. Low-carbon ferrochrome can be circulated. Spots are even in short supply. At the same time, as the price of chrome ore in South Africa strengthened again, other varieties of chrome ore were driven by it, low-priced resources were withdrawn from the market, and the cost of ferrochromium increased. According to the current data chart, the price of ferrochromium may continue to increase.
ZXferroalloy is a ferrochromium manufacturer. We have sufficient raw materials in reserve. In late September, when the epidemic eased, we increased production to meet the needs of domestic and foreign customers.