Ferrochrome Prices Kept Falling amid Bearish Sentiments and Increased Output

SHANGHAI, Nov 15 (SMM) - The prices of high-carbon ferrochrome kept falling last week.

TISCO, Baosteel Desheng, and JISCO released the bidding prices of high-carbon ferrochrome for November last week, and the average price rose by 510 yuan/mt (Cr 50%) from October. The retail quotations in the market were not boosted by the higher bidding prices.

The high-carbon ferrochrome output increased significantly amid alleviated power rationing across the country, easing the short supply in the market, and the high-carbon ferrochrome had more stocks for retail. The ferrochrome plants were selling the goods actively, but the traders purchased cautiously for fear of further price decline. The overall market transactions were thin. The ex-factory prices of high-carbon ferrochrome were offered at 10,200-10,300 yuan/mt (Cr 50%, in cash) in Inner Mongolia and 10,200-10,300 yuan/mt (Cr 50%) in Sichuan. The lowest traded price was 10,200 yuan/mt (Cr 50%) last week.

Other ferrochrome: The prices of low-carbon ferrochrome continued to fall last week. As of November 12, the low-carbon ferrochrome (C 0.25) was quoted at 20,300-22,600 yuan/mt (Cr 60%, acceptance, delivery to the factory). The supply of low-carbon ferrochrome increased amid higher output, while the demand did not improve. The prices of low-carbon ferrochrome are expected to drop further recently.

The output of high-carbon ferrochrome increased by 45,700 mt or 9.71% to 434,700 mt amid eased power rationing in October. The domestic stainless steel production in October totalled about 2.30 million mt, up 799,000 mt or 3.59% month on month. The tight supply of ferrochrome eased significantly. The power rationing in Guizhou and Hunan eased as well. The ferrochrome output in November is expected to increase further. The coke prices declined, and the electricity prices have basically stopped rising. The prices of high-carbon ferrochrome dropped amid sufficient supply and weaker cost support. High-carbon ferrochrome retail prices are expected to move between 9800-10200 yuan/mt (Cr50%) this week.