Trade Resources Industry Views Chinese Import Prices for Ferrochrome and Charge Chrome Were Unchanged This Week

Chinese Import Prices for Ferrochrome and Charge Chrome Were Unchanged This Week

Chinese import prices for ferrochrome and charge chrome were unchanged this week, as market activities slowed ahead of the Lunar New Year holidays starting end-January.

The spot price for Indian-origin high carbon ferrochrome (58-60% Cr) was assessed at 84-86 cents/lb CIF China and that for South African charge chrome (48-52% Cr) at 83-84 cents/lb CIF China on Friday, both unchanged from a week earlier.

This week, one Indian source heard that an Indian producer had sold 500 mt to a Chinese trader at 85 cents/lb CIF China, arrival around mid-February. "Indian producers are ready to accept prices at 85-86 cents/lb CIF," said the source.

One Shanghai-based trader received an offer for Indian ferrochrome at 89 cents/lb CIF China, with the offer up by about 3 cents/lb from the previous week.

"Suppliers may be expecting prices to rise as nickel prices have increased or they are offering any price they like as they know nobody will be buying anyway," suggested the trader.

The trader added that there were no price indications from her customers as there were no inquiries for imported material in the week. "But I believe buyers' price ideas are unchanged at 84-85 cents/lb CIF because there is no change in Chinese domestic prices," she added.

The South African charge chrome price (48-52% Cr) was assessed unchanged week on week on a lack of price indications from industry participants.

Deals and offers were sparse in the market as industry participants have either started their holidays or were not keen to purchase before the holidays.

While some market participants are bullish that ferrochrome prices could rise after the Lunar New Year holidays over January 31-February 6 as higher nickel prices could boost stainless steel prices, others reckon that prices would at best remain stable.

Prices are likely to remain capped by rising Chinese domestic production and import volumes into China, said a Hong Kong trader. "The import price rallies we've seen before, those days have passed," he said.

An Asian buyer said price directions would depend on the situation in South Africa's power sector.

"Some people are saying that if there is no (power) buyback by Eskom, there will be a big (ferrochrome) surplus in the market," he said.

There had been word in the market that the South African state-owned utility could ink power cut agreements with local industrial users due to tight power supply in the country. On Friday, Eskom's power alert status on its website was red which meant "electricity supply is under severe strain."

Chinese domestic spot prices of high carbon ferrochrome (50% basis Cr) in China were at Yuan 6,750-6,900/mt (84-86 cents/lb) on Wednesday, unchanged from the previous week.

The stainless steel industry is the largest user of high carbon ferrochrome.

Source: http://news.chemnet.com/Chemical-News/detail-2239042.html
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China Ferrochrome: Import Prices Flat Amid Slowdown Ahead of Lunar New Year Holidays
Topics: Metallurgy