Chrome Market Report July 2017
2017-08-17 17:43:46 【Print】
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During July, ferrochrome prices initially moved up and then stabilized. Steel mills' bidding prices for ferrochrome increased sharply by RMB1,500/t (USD225/t) during the month, injecting confidence into the depressed ferrochrome market. Prices for high carbon ferrochrome went up persistently during early July and then paused when reaching production costs as a result of sluggish market demand, while low and extra-low carbon ferrochrome prices increased unceasingly during the month. By the end of the month, the August bidding prices for ferrochrome released by domestic steel mills had been in line with the previous month. As the August bidding prices were released earlier, most ferrochrome producers planned to mainly focus on steel mills' orders in August and thus the supply in the spot market may continue to be tight. Therefore, analysts anticipate that spot prices for ferrochrome are likely to show an upward trend in August.
During the month, spot prices for chrome ore at domestic ports fluctuated. In specific, South African chrome ore concentrate slipped after initially rising, but eventually stabilized; prices for mainstream chrome ore lump stayed firm following a rise thanks to the supply shortage. However, ferrochrome producers mainly adhered to the hand-to-mouth purchasing strategy for chrome ore considering the vague market conditions, leading to a quiet market. Seeing higher ferrochrome prices in August, market participants predict that both CIF prices from overseas suppliers and domestic prices for the spot material tend to go up.
During the month, spot prices for chrome ore at domestic ports fluctuated. In specific, South African chrome ore concentrate slipped after initially rising, but eventually stabilized; prices for mainstream chrome ore lump stayed firm following a rise thanks to the supply shortage. However, ferrochrome producers mainly adhered to the hand-to-mouth purchasing strategy for chrome ore considering the vague market conditions, leading to a quiet market. Seeing higher ferrochrome prices in August, market participants predict that both CIF prices from overseas suppliers and domestic prices for the spot material tend to go up.
