Purchasing Prices of Ferrochrome Offered by Steel Mills still Diverged after National Day Holiday

SHANGHAI, Oct 9 (SMM) - The retail quotations of high-carbon ferrochrome stabled at 8000-8200/mt (Cr50%) after the National Day holiday. The tight supply of available spot goods in the market did not improved significantly, and ferrochrome factories were not in a hurry to ship. In addition, the price difference between the purchasing prices offered by mainstream stainless steel mills in October and the recent retail prices was relatively large. Therefore, the traders were wait-and-see and the market transactions were thin. During the National Day holiday, the pandemic broke out in Inner Mongolia. The situation in Hohhot, Baotou and other places was more serious. But the situation in Ulanqab and other places where ferrochrome manufacturers were mainly concentrated was relatively mild, hence the production of ferrochrome was not significantly affected.

The prices of chrome ore were still basically stable. Although the cost of spot chrome ore was relatively high at this stage, miners tended to hold the prices firm. However, after mid-October, low-priced chrome ore purchased in the early stage will gradually arrive at ports. In addition, the recent reduction in production by ferrochrome factories also put pressure on the increase of ore prices. It is expected that the chrome ore will remain stable. The first round of coke price hike was completed, and the prices of secondary-grade metallurgical coke in Inner Mongolia rose to 2,350 yuan/mt. Ferrochromium manufacturers were around the break-even point, and the cost support still existed. Coupled with the expectation of production reduction of ferrochrome factories and the production increase of stainless steel mills, high-carbon ferrochrome prices are expected to remain stable.