China's high-carbon ferrochrome imports reached 394,700 mt In April, bid prices exacerbated supply surplus [SMM Analysis]

According to customs statistics, in April, China's high-carbon ferrochrome imports amounted to 394,700 mt, up 88,300 mt MoM (+28.84% MoM) but down 17,500 mt YoY (-4.23% YoY). The imports in January-April totalled 1.3021 million mt, up 72,200 mt YoY (+5.87% YoY). In March, China imported 218,400 mt of high-carbon ferrochrome from South Africa.

According to SMM, the bid prices for high-carbon ferrochrome by major stainless steel mills rose by 500 yuan/mt (Cr50%) in April, which attracted more imported high-carbon ferrochrome. Stainless steel production increased further, bringing more demand for high-carbon ferrochrome, leaving high-carbon ferrochrome imports in April reaching a recent peak. Meanwhile, domestic production also surged, exceeding 700,000 mt. With the large imports in March and April, the domestic supply of high-carbon ferrochrome gained far more than the demand, resulting in a severe supply surplus. Given the current high scheduled production of stainless steel mills and stainless steel prices supported by strong NPI prices, high-carbon ferrochrome prices still had some support. However, if stainless steel consumption weakens or NPI prices decline, high-carbon ferrochrome prices may fall amid oversupply.