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China HCFeCr Market - Mills Are Slow
= Quotes from stainless steel mills may delay into April =
Producers and users are in a standoff over the price of high-carbon ferrochrome under the continued pressure blocking it to go up.

Reasons behind this are (i) users have enough stocks, discouraging them in fresh buying, (ii) current price level is close to the break-even, making the producers very reluctant to sell at lower prices, (iii) there is no sign of recovery in demand currently for high-carbon ferrochrome, (iv) the price of chrome ore is forecasted to soften in a short run, and (v) the policy to cut raw material costs of stainless steel mills allows little room for the price to go up. Therefore the mills may delay their quotes for April into next month.

Prices in the market have been basically unchanged in March, i.e. in Tianjin market, <> March 1: RMB7,800 - 8,100/ton, March 15: RMB 7,700 - 8,000/ton, and March 22: RMB7,700 - 8,000/ton. In February the price did not change so much either but stayed in a little higher range than in March.

The ore stocks at portside are still in a high level at more or less 3 million tons, causing ferrochrome price weakness in China. However, the ore price may go up, as the Indian government altered export duty to 30% of the ore value making the price higher in the current market, and a CEO of a major ferrochrome producer in South Africa recently urged again to impose US$100/ton of the chrome ore for exports to China as a duty.
last modified : Wed 28 Mar, 2012 [11:42]
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