Ferrochrome Plants Held Prices Firm due to Severe Losses Caused by Huge Gap between Bid Price and Retail Quotation

SHANGHAI, Sep 26 (SMM) - As of Septebmer 26, high-carbon ferrochrome in Inner Mongolia was quoted at 7,800-8,000 yuan/mt (Cr50%), flat from the previous trading day. After Tinghshan Group released the biding price, the market expected lower prices. But the supply available in the spot market were tight, and thus ferrochrome plants still held prices firm to avoid severe losses. Subsequently, downstream enterprises were reluctant to pick up cargoes amid high quotes, so the transactions were muted. Given that the cost of ferrochrome stood high while the bidding prices were lower than expected, ferrochrome plants were more likely to reduce or even suspend the production to alleviate their losses. It is expected that the supply of ferrochrome will decline. In addition, the ferrochrome prices are expected to remain stable before the National Day holiday with cost support and high purchasing demand.