Chinese high carbon ferrochrome prices temporarily stable
2016-05-18 17:08:07 【Print】
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BEIJING (Asian Metal) 18 May 16 – Prices for high carbon ferrochrome 50%min are between RMB5,800-6,000/t ex works VAT included by cash payment in the Chinese market currently, unchanged from late last week, with transactions stable, and are expected to stay stable in the coming week.
A producer based in South China revealed that their prices for high carbon ferrochrome 50%min are RMB6,000/t ex works VAT included by cash payment currently, in line with late last week. “We mainly arrange our production based on orders currently and haven’t adjusted prices this week as transactions are stable. Currently, electricity price is at rainy-season level and our electricity cost is RMB0.42/kwh on average, down by RMB0.1/kwh compared with that in March. Most ferrochrome plants have resumed production since electricity price has adjusted to rainy-season level and prices for high carbon ferrochrome have increased by RMB500/t during this month, leading to increased supply. However, prices for stainless steel have yet to show improvement, so prices for high carbon ferrochrome 50%min are lack of strong support for further rise,” stated the source.
With an annual capacity of 200,000t of high carbon ferrochrome, the producer suspended production from early February and resumed production in April. They plan to produce around 6,000t of the material in May with around 4,000t in April and hold no material in inventory available for sale at present.
Another producer based in South China disclosed that their prices are at RMB6,000/t ex works VAT included by cash payment this week, level off with late last week, with sales stable. “Currently, the high carbon ferrochrome market sees a supply shortage. Ferrochrome plants sell the material to steel mills at RMB5,200-5,300/t ex works VAT included by cash payment, while retail prices are up to RMB5,800-6,000/t ex works VAT included by cash payment in the spot market, with a price gas of up to RMB600-700t. Therefore, steel mills may replenish the material towards the end of the month or raise tender prices for June, but currently prices are lack of upward momentum in the spot market,” explained the producer.
With an annual capacity of 150,000t of high carbon ferrochrome, the producer produced around 2,000t of the material in April and expects to see a similar output in May. They hold no material in inventory available for sale at present.
A producer based in South China revealed that their prices for high carbon ferrochrome 50%min are RMB6,000/t ex works VAT included by cash payment currently, in line with late last week. “We mainly arrange our production based on orders currently and haven’t adjusted prices this week as transactions are stable. Currently, electricity price is at rainy-season level and our electricity cost is RMB0.42/kwh on average, down by RMB0.1/kwh compared with that in March. Most ferrochrome plants have resumed production since electricity price has adjusted to rainy-season level and prices for high carbon ferrochrome have increased by RMB500/t during this month, leading to increased supply. However, prices for stainless steel have yet to show improvement, so prices for high carbon ferrochrome 50%min are lack of strong support for further rise,” stated the source.
With an annual capacity of 200,000t of high carbon ferrochrome, the producer suspended production from early February and resumed production in April. They plan to produce around 6,000t of the material in May with around 4,000t in April and hold no material in inventory available for sale at present.
Another producer based in South China disclosed that their prices are at RMB6,000/t ex works VAT included by cash payment this week, level off with late last week, with sales stable. “Currently, the high carbon ferrochrome market sees a supply shortage. Ferrochrome plants sell the material to steel mills at RMB5,200-5,300/t ex works VAT included by cash payment, while retail prices are up to RMB5,800-6,000/t ex works VAT included by cash payment in the spot market, with a price gas of up to RMB600-700t. Therefore, steel mills may replenish the material towards the end of the month or raise tender prices for June, but currently prices are lack of upward momentum in the spot market,” explained the producer.
With an annual capacity of 150,000t of high carbon ferrochrome, the producer produced around 2,000t of the material in April and expects to see a similar output in May. They hold no material in inventory available for sale at present.
