Ferrochrome prices fell before rising after Labour Day holidays

SHANGHAI, May 19 (SMM) — Low prices of high-carbon ferrochrome occurred and quotes edged lower. The lowest retail prices stood below 7,151 yuan/mt (Cr 50%). However, many manufacturers in central China and south China reported brisk downstream inquiries and orders after the holiday. Some plants in Guangxi  remained closed in May, growing demand from neighbouring regions. Several plants in north China have scheduled production to after May 20. Power consumption policy in inner Mongolia  affected output slightly. One plant has oversold and stopped to take orders.  Ferrochrome plants raised quotes by 50-100 yuan/mt (Cr 50%). As of Friday May 14, ex-factory prices of natural high-carbon ferrochrome lump in Inner Mongolia stood at at 7,250-7,400 yuan/mt (Cr 50%, in cash), and at 7,300-7,500 yuan/mt (Cr 50%) in Sichuan.

On other ferrochromes, price adjustments of low- and medium-carbon ferrochrome were in line with high-carbon ferrochrome. Low- and medium-carbon ferrochrome prices decreased 200-300 yuan/mt (Cr 60%) in the first half of last week as several plants sold at lower prices to generate cash. A large number of traders entered the market in the second half of the week amid concerns over big price gains, improving trades of Low- and medium-carbon ferrochrome remarkably. Factory raised prices amid brisk shipments and higher costs.