SHANGHAI, Nov 19 (SMM) – Further downward room is expected in the fourth quarter for prices of high-carbon ferrochrome, one of the essential raw materials in stainless steel production, as the stainless steel market showed signs of slow demand. 

Traded prices of high-carbon ferrochrome (50% Cr) in the north stood at 6,650-6,700 yuan/mt as of last Friday, with prices in the south at 6,800-6,900 yuan/mt. This week, we expect prices of high-carbon ferrochrome (50% Cr) to stay flat in the north, and to dip to 6,800-6,850 yuan/mt in the south. 

Market participants mostly remained bearish on prices, and awaited new rounds of tenders by steel mills, SMM learned. 

Production of high-carbon ferrochrome is forecasted to fall 4.87% from October to 463,200 mt in November, as higher electricity prices in Sichuan province in the dry season lowered operating rates across plants. 

The environmental impact and narrower profits in Hunan and Guizhou provinces will also reduce local production of high-carbon ferrochrome this month. In Inner Mongolia, however, output is expected to rise 1.52% on the month to 268,000 mt.