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Can Oversupply Ease as Imports of High-Carbon Ferrochrome in August Dropped by 24%
Sep 22, 2022 11:10CST
Source:SMM
According to customs statistics, China's imports of high-carbon ferrochrome were 235,000 mt in August 2022, a decrease of 76,700 mt or 24.61% from the previous month and up 85,100 mt or 56.76% on the year.

SHANGHAI, Sep 22 (SMM) - According to customs statistics, China's imports of high-carbon ferrochrome were 235,000 mt in August 2022, a decrease of 76,700 mt or 24.61% from the previous month and up 85,100 mt or 56.76% on the year. From January to August 2022, imports of high-carbon ferrochrome totalled 1.3057 million mt, down 342,000 mt or 18.17% on the year. The import volume from South Africa was 141,000 mt, down 31,200 mt or 18.14% on the month, and up 65,400 mt or 86.6% on the year.
According to SMM, the decline in output of high-carbon ferrochrome in July was limited. As the imports of high carbon ferrochrome surged, and the production of stainless steel was greatly reduced, the domestic supply of high-carbon ferrochrome was seriously oversupplied. In August, both the output and import of ferrochrome fell. However, as the output of stainless steel further declined, the supply surplus of ferrochrome did not alleviate. Since September, stainless steel consumption picked up, hence steel mills increased the production, and the demand for ferrochrome increased. However, domestic ferrochrome plants reduced the production amid the poor profits. As the retail supply of high-carbon ferrochrome was insufficient, the prices went up. In Europe and other countries, energy supply was tight, the output of steel mills declined, hence overseas ferrochrome demand weakened. The port inventory of chrome ore increased, and the supply of low-priced chrome ore will gradually arrive at the port in October. In this scenario, the cost support of ferrochrome may weaken. Market should pay close attention to the impact of stainless steel terminal consumption on the ferrochrome prices.

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