Market Retail Shortages Intensify, Widening the Selling Price Gap for High-Chrome Steel [SMM Daily Review]

On March 6, the quotation for high-carbon ferrochrome in Inner Mongolia was 7,600-7,700 yuan/mt (50% metal content), unchanged from the previous trading day. After the release of the March high-carbon ferrochrome steel mill tender prices, retail ferrochrome quotations not only did not fall but instead rose, further widening the gap between retail and tender prices. Due to the low tender prices, domestic ferrochrome producers' willingness to produce was rather low, with some even cutting or halting production. Currently, ferrochrome supply is already at a low level; although large stainless steel mills had previously stockpiled ample raw material inventory, most currently operating ferrochrome producers are only maintaining long-term contract production. This has kept the retail market in a state of shortage, and the situation of tight supply may further intensify. Additionally, with current stainless steel production schedules at a high level, future tender prices are still expected to rise, and with chrome ore prices being relatively high, providing strong support for ferrochrome costs, these factors combined suggest that ferrochrome prices will continue to fluctuate upward. 》Order to view SMM historical spot metal prices