In December 2024, imports of high-carbon ferrochrome reached 259,600 mt, while domestic ferrochrome supply surplus led to a decline in import volumes [SMM Analysis].

SMM, Dec 20:

According to Chinese customs statistics, China's imports of high-carbon ferrochrome in December 2024 reached 259,600 mt, down 51,100 mt MoM, a decrease of 16.45%; up 37,200 mt YoY, an increase of 16.74%. From January to December 2024, China's total imports of high-carbon ferrochrome amounted to 3.6576 million mt, up 415,900 mt YoY, an increase of 12.83%. By country, in December, China imported 140,300 mt of high-carbon ferrochrome from South Africa and 83,700 mt from Kazakhstan. In December, imports of high-carbon ferrochrome through ordinary trade amounted to 202,300 mt, while Entry and Exit Goods in Bonded Control Areas and Entrepot Trade by Customs Special Control Area accounted for 55,600 mt.

According to SMM, throughout the year, domestic supply of high-carbon ferrochrome remained in surplus, leading to a continuous decline in procurement prices by stainless steel mills. From August 2024 to January 2025, tender prices cumulatively dropped by 2,000 yuan/mt (50% metal content), reducing the attractiveness of overseas ferrochrome. With the approach of the year-end and the Chinese New Year holiday, market transactions have gradually weakened. Stainless steel mills have started annual maintenance and production cuts, resulting in decreased demand for ferrochrome. Although ferrochrome prices have recently rebounded slightly due to pre-holiday stockpiling demand, the previous supply surplus has kept market sentiment pessimistic. Moving forward, close attention should be paid to the production and consumption trends of stainless steel.