Ferrochrome Imports Fell Steeply in Dec, Surplus Deficit Triggers Upbeat Sentiment

SHANGHAI, Feb 3 (SMM) - According to the data released by the General Administration of Customs of China, China's imports of high-carbon ferrochrome were 230,600 million mt in December last year, down 29,300 mt or 11.27% from the previous month, and up 121,100 mt or 110.59% on the year. The total imports in 2022 fell 149,200 mt or 6.18% on the year to 2.26 million mt. Among them, the imports from South Africa stood at 99,000 mt.

SMM survey shows that although the stainless steel plants kept cutting their production, the sharp fall in ferrochrome imports also caused domestic ferrochrome manufacturers to trim output on losses. The supply deficit aggravated amid strong restocking demand in the year-end.

At the beginning of this year, the stainless steel output declined substantially, and January-February is the traditional off season for ferrochrome and stainless consumption. Nevertheless, the optimism on economic recovery and the cost support from high chrome ore prices still triggered bullish sentiment on ferrochrome prices.