The Import Volume of Ferrochrome in May Fell by 37% Year-on-Year, The Demand Remaining Weak amid Sufficient Supply

SHANGHAI, Jun 24 (SMM) –

According to customs statistics, China's imports of high-carbon ferrochrome were 158,400 mt in May 2022, a month-on-month decrease of 41,500 mt or 22% and a year-on-year decrease of 91,900 mt or 37%. From January to May 2022, imports of high-carbon ferrochrome totalled 863,900 mt, down 532,600 mt or 38.14% year on year. High-carbon ferrochrome imports from South Africa were 55,700 mt, a decline of 45,100 mt or 44.73% on the month and a year-on-year decrease of 78,800 mt or 58.58%.

According to SMM, the downstream consumption of stainless steel is weak and finished products inventory of steel mills increases. The demand for ferrochrome weakened amid the narrowed profit margin of production and the expectation of production reduction. In addition, domestic steel mills still maintained a certain profit with the stock of raw material, and the operating rates of domestic steel mills were high in Ma with sufficient supply of ferrochrome. The prices of ferrochrome continued to fall amid sufficient market supply, while the cost efficiency of domestic steel improved but the imported steel decreased. In June, although domestic ferrochrome plants suffered losses and some southern steel mills reduced or stopped production to maintain equipment, the sufficient supply of ferrochrome may remain due to the simultaneous reduction of production at stainless steel plants.