Bid prices by mainstream stainless steel mills in April plunged more than the market had expected by 600 yuan/mt (Cr 50%). Bid prices by Tsingshan Group fell to 8,795 yuan/mt (Cr 50%).
As ferrochrome was seriously oversupplied, ferrochrome plants lowered their prices close to the bid prices of stainless steel mills despite losses. Ferrochrome supply declined in the wake of concentrated shutdown of ferrochrome plants in south China.
Meanwhile, cost support strengthened on the back of firm chrome ore prices and fears of further declines in the already low port inventories of chrome ore. In this scenario, the prices of ferrochrome stopped falling and rebounded in late April.
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