The spot price of South Africa-origin charge chrome (48-52% Cr) was assessed by Platts at 79-80 cents/lb CIF on Friday, down from 80-81 cents/lb CIF China a week ago, on slow demand and ample supply.
A deal was confirmed at 80 cents/lb CIF this week, with sources pegging the tradeable range for charge chrome at 79-80 cents/lb CIF.
The price range -- while still slightly higher than Chinese domestic prices which on Wednesday were at Yuan 6,200-6,400/mt (equivalent to 76-79 cents/lb) -- is acceptable to smaller Chinese stainless steelmakers that are unable to purchase at low domestic prices like major Chinese stainless steelmakers, said sources.
The range is also seen as acceptable to low-cost South African producers.
"The production costs of some of the producers who have their own mines are in the low-70s cents/lb. 79 cents/lb CIF is still profitable for them," said a Hong Kong-based trader.
Buying interest for imports remained thin in China. Chinese market participants either said they did not receive any inquiries for imports from end-users or they are only procuring in the domestic market.
Some Chinese buyers have expressed interest -- not firm bids though -- to buy at 76-78 cents/lb CIF, but the range is not widely seen as acceptable to sellers yet, sources said.
Market sentiments in China is weak after three of the country's largest stainless steelmakers recently cut their October domestic purchase prices by Yuan 50/mt, and also on softening Chinese austenitic stainless steel prices and demand.
Other than weak demand in China, charge chrome suppliers are also facing slow demand in markets like Taiwan and South Korea where stainless steel demand and prices are sluggish as well, said industry watchers.
Meanwhile the spot price of India-origin high carbon ferrochrome (58-60% Cr) was assessed unchanged week on week at 82-84 cents/lb CIF China Friday.
There was a lack of buying interest for Indian ferrochrome in the Chinese market, where buyers' price ideas were at 80 cents/lb CIF or lower.
But Indian offer prices are holding up as production cuts in the country have tightened supply, while suppliers opt to sell in the domestic market and other markets like Japan which are fetching higher prices than the Chinese market, said sources.
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