South Africa's high-carbon ferrochrome exports in April reached 336,300 mt, domestic high-carbon ferrochrome supply surplus continued [SMM Analysis]

According to South African customs data, in April, South Africa's high-carbon ferrochrome exports reached 336,300 mt, up 14,800 mt MoM (+4.61% MoM) and 18,100 mt YoY (+5.68% YoY). In April, South Africa exported 144,400 mt of high-carbon ferrochrome to China, up 38,700 mt MoM (+34.97% MoM) and 19,800 mt YoY (+15.31% YoY).

The SMM survey showed that with the arrival of the peak season, major stainless steel mills increased production, driving the bidding prices of high-carbon ferrochrome for April to soar. The market's buying enthusiasm surged, further increasing the demand for imported high-carbon ferrochrome. Meanwhile, Indonesian newly commissioned production lines are expected to further increase China's imports of high-carbon ferrochrome. However, the output increase from domestic high-carbon ferrochrome producers exacerbated supply surplus. Currently, the domestic retail market has weakened significantly, and high-carbon ferrochrome producers increased their reliance on long-term contract orders. Due to several months of supply surplus, steel mills held sufficient raw material inventories. Despite recent high prices of chrome ore to provide strong cost support, the profits of high-carbon producers were limited amid weak fundamentals.