In October, high-carbon ferrochrome imports reached 251,500 mt; supply surplus led to lower bidding prices and simultaneous decline in imported ferrochrome prices [SMM Analysis]

According to Chinese customs statistics, in October 2024, China's high-carbon ferrochrome imports amounted to 251,500 mt, down 53,000 mt MoM, a decrease of 17.41%; down 53,300 mt YoY, a decrease of 17.48%. From January to October 2024, China's total high-carbon ferrochrome imports were 3.0873 million mt, up 366,000 mt YoY, an increase of 13.45%. By country, in October, China imported 98,300 mt of high-carbon ferrochrome from South Africa and 88,800 mt from Kazakhstan. In October, the volume of high-carbon ferrochrome imported through Ordinary Trade was 176,400 mt, while through Entry and Exit Goods in Bonded Control Areas and Entrepot Trade by Customs Special Control Area was 73,200 mt. In October, high-carbon ferrochrome exports were 13,300 mt.

According to SMM, this year's traditional "September-October peak season" performed poorly, with market confidence significantly weakened. Domestic high-carbon ferrochrome supply was in severe surplus, coupled with a sharp decline in bidding prices, leading to a significant drop in demand for imported ferrochrome, resulting in a sharp reduction in high-carbon ferrochrome imports in October. Currently, the bidding prices for ferrochrome continue to decline, and domestic ferrochrome producers are generally facing losses, further weakening the market demand for imported ferrochrome. However, the issue of supply surplus remains unresolved, and it is expected that the ferrochrome market will continue to remain weak in the short term.