Chrome Market Report June 2017
2017-07-07 16:59:35 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
Please contact us for a subscription.
Please contact us for a subscription.
In June, Chinese ferrochrome prices declined firstly and then increased. Due to substantially decreased bidding prices from steel mills, ferrochrome producers suffered great losses and thus generally reduced or halted production. Meanwhile, demand for ferrochrome from large stainless steel mills was soft, resulting in continuously decreased prices in early-to-mid June. Influenced by large scales of production halt, the supply for ferrochrome was very tight in the spot market in late June and most small steel mills which originally expected that prices for the material will go down made centralized purchases till late June. Thus, ferrochrome producers and traders who held stocks substantially raised their selling prices, leading to spot prices in late June be nearly RMB2,000/t (USD294/t) higher than bidding prices from steel mills. Bidding prices for ferrochrome of July from Baosteel and Tsingshan Steel were RMB7,000/t (USD1,029/t) D/P VAT included delivered to plants, up by RMB1,500/t (USD221/t) MOM. It’s expected that ferrochrome prices will go up in July in the spot market due to tight supply caused by large scales of production halt in previous days.
The demand for chrome ore was weak in June as many domestic ferrochrome producers reduced or halted production. Both overseas prices and prices in China ports declined till late June when chrome ore overseas suppliers and domestic traders accordingly raised their quotations affected by continuously increased prices for ferrochrome. However, due to soft demand, transactions for chrome ore were limited. With bidding prices for ferrochrome of July from steel mills up substantially, it’s expected that ferrochrome producers who had halted production before will gradually resume production. In addition, domestic chrome ore traders had suffered great losses before. Thus, it’s expected that chrome ore prices in both home and abroad will go up in July.
The demand for chrome ore was weak in June as many domestic ferrochrome producers reduced or halted production. Both overseas prices and prices in China ports declined till late June when chrome ore overseas suppliers and domestic traders accordingly raised their quotations affected by continuously increased prices for ferrochrome. However, due to soft demand, transactions for chrome ore were limited. With bidding prices for ferrochrome of July from steel mills up substantially, it’s expected that ferrochrome producers who had halted production before will gradually resume production. In addition, domestic chrome ore traders had suffered great losses before. Thus, it’s expected that chrome ore prices in both home and abroad will go up in July.
