Ferrochrome Prices Extended Decline amid Growing Pessimism

SHANGHAI, Jul 25 (SMM) - On July 22, the quotations of high carbon ferrochrome in Inner Mongolia were 8,300-8,600 yuan/mt (Cr 50%), down 200 yuan/mt (Cr 50%) from the previous trading day. The price of high-carbon ferrochrome continued to decline last week. The price of high-carbon ferrochrome in Inner Mongolia fell by 300 yuan/mt (Cr50%) last week. The pessimism in the market continued. With mainstream steel mills about to announce bid prices towards the end of the month, wait-and-see sentiment dominated the market. 
In terms of cost, coke prices recorded the fourth round of decline, down by 200 yuan/mt. Prices of chrome ore were stable on the back of high offers from overseas mines.  
The operating rates of ferrochrome plants in the south dropped significantly, but most ferrochrome plants in the north still hold a wait-and-see attitude, waiting for the bid prices of steel mills. In the short term, ferrochrome will remain in oversupply.  
In terms of demand, stainless steel mills reduced purchases due to losses, poor end demand and bearish sentiment. It is expected that the price of high-carbon ferrochrome will remain vulnerable to decline in the near future.