China's Jiuquan Iron & Steel has cut its high carbon ferrochrome purchase price by Yuan 100/mt ($16/mt) on the month to Yuan 6,500/mt (80 cents/lb), including 17% VAT, for May deliveries, industry sources said Monday.
The drop was larger than the Yuan 50/mt cut tabled by Baosteel last week but the decline was still within market expectations, said a Beijing-based analyst with China's state-owned nonferrous metals information division, Antaike. Baosteel had set its May purchase price at Yuan 6,650/mt last week.
Industry watchers are expecting the country's major stainless steelmakers to either roll over or cut their May ferrochrome purchase prices by Yuan 50-100/mt for May deliveries due to weak demand and high supply in the market.
Spot offers in Inner Mongolia have fallen to around Yuan 6,550/mt ex-works since businesses in China reopened on Sunday, which is down by about Yuan 50/mt from a week ago, said the analyst. China was closed for Labor Day holidays over May 1-3.
Domestic spot prices of high carbon ferrochrome (50% basis Cr) in China were at Yuan 6,600-6,800/mt, delivered with 17% VAT last Wednesday, unchanged since April 9.
Shanxi Taigang Stainless Steel had yet to table its price as of Monday afternoon. The stainless producer had previously cut its April purchase price by Yuan 100/mt from the previous month to Yuan 6,500/mt.
Jiuquan officials could not be reached for comments.
