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China HCFeCr Market; Recovery On The Horizon
= Some spot supply shortage from production cutbacks =
Weak demand for high-carbon ferrochrome still continues before the New Year Holidays (January 22 - 28), but there seems a sign of recovery in demand as the production cutback which widened during December takes effect. In Hunan and Sichuan, spot supply were reportedly short due to the quickly spread production curtailment, and seller became somewhat reluctant to offer spot. This is one of the signs of silver lining for the market participants who have been waiting for recovery.

Recent price movement of high-carbon ferrochrome (Cr: 55%, C<10%) for domestic destinations was, <> RMB7,600 – 7,700/ton on December 10, <> RMB7,600 – 7,900/ton on December 20, <> RMB7,600 –7,900/ton on December 29, <> RMB7,900 – 8,100/ton on January 11 (in Tianjin market). The price apparently bottomed out in December and took the modestly rising tide after the opening of this year.

In addition, according to a local media in China, TISCO's planned production of stainless steel in 2012 is 3.30 million tons compared to 3.02 million tons in 2011 (up by 11.0% from 2010) and the media forecasts that consumption of high-carbon ferrochrome and demand for the imported chrome ore in 2012 will both increase. On this basis, optimists have a good reason to expect a firm recovery of high-carbon ferrochrome market before long.

The purchasing prices as quoted by the Chinese stainless steel producers for deliveries in January are mostly higher than their December prices, which were detailed in the Tex's article of January 12 issue under the title of "China High-Carbon FeCr Price For January Continues Firm".
last modified : Wed 18 Jan, 2012 [10:28]
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