In July, China's high-carbon ferrochrome imports reached 305,900 mt, with supply remaining in surplus at high levels [SMM Analysis]

According to Chinese customs statistics, in July 2024, China's high-carbon ferrochrome imports amounted to 305,900 mt, down 24,500 mt MoM, a decrease of 7.42%, but up 59,200 mt YoY, an increase of 23.98%. From January to July 2024, China's total high-carbon ferrochrome imports were 2.2503 million mt, up 422,100 mt YoY, an increase of 23.09%. By country, in July, China imported 172,100 mt of high-carbon ferrochrome from South Africa and 89,300 mt from Kazakhstan. In July, the imports of high-carbon ferrochrome through general trade were 234,000 mt, while those under bonded supervising places and special customs supervision areas accounted for 69,100 mt. In July, high-carbon ferrochrome exports were 12,600 mt.

According to SMM, the imports of high-carbon ferrochrome have remained high throughout the year due to high bidding prices from domestic stainless steel mills, especially imports from Kazakhstan, which have cumulatively increased by 133.64%. In addition, with the concentrated release of new domestic high-carbon ferrochrome capacity, domestic high-carbon ferrochrome supply is now in severe surplus. Recently, September bidding prices of steel mills were announced, with a decrease of 200 yuan/mt (Cr50%), which is expected to reduce the attractiveness of overseas high-carbon ferrochrome. Domestic high-carbon ferrochrome manufacturers operate at a loss at current prices, which has also suppressed their high operating rates.