Monthly Chrome Market Report Jun 2018
2018-07-12 10:04:15 【Print】
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1. Market Highlights
Generally, the ferrochrome market in June climbed continuously. The HC ferrochrome purchase prices from three major steel mills for June increased by RMB200/t (USD30/t) that led the spot prices of HC ferrochrome went up by RMB300/t (USD45/t) in the first half of June. Then, the environmental protection became the theme of this month. Many plants halted ferrochrome production as their production standard could not meet the requirement of the environmental protection, especially in major production areas, such as Inner Mongolia, where the total output of ferrochrome reduced by about 40% in June. The market witnessed extremely tight supply and steel mills had to increase their purchase prices sharply. In the last week of June, Tsingshan Steel took the lead to release its purchase price of HC ferrochrome for July, up by RMB700/t (USD105/t) from June, which quickly inspired the prices of HC ferrochrome to climb by RMB200/t (USD30/t). However, many plants would resume production and the tight supply in the market is supposed well improved in the coming month. Moreover, the downstream demand sees no significant increase as the stainless steel market in China remains weak. Insiders predict the ferrochrome prices in China would remain relatively stable in July.
The chrome ore prices at Chinese ports flattened out in June generally. The ferrochrome prices increased greatly in June but it did not stimulate the chrome ore prices to go up. Many plants suspended production and slowed down the chrome ore purchase activities this month. Downstream demand stayed soft while the total inventory of chrome ore at Chinese ports stood enormous, so the chrome ore market witnessed sluggish transactions in June. Though some Chinese chrome ore traders made common announcement that they would stop quotation and refuse to sell due to the low prices, it could make little difference to the weak market. This situation would hardly be improved and insiders believe the prices of chrome ore would possibly stay stable relatively in July.
Generally, the ferrochrome market in June climbed continuously. The HC ferrochrome purchase prices from three major steel mills for June increased by RMB200/t (USD30/t) that led the spot prices of HC ferrochrome went up by RMB300/t (USD45/t) in the first half of June. Then, the environmental protection became the theme of this month. Many plants halted ferrochrome production as their production standard could not meet the requirement of the environmental protection, especially in major production areas, such as Inner Mongolia, where the total output of ferrochrome reduced by about 40% in June. The market witnessed extremely tight supply and steel mills had to increase their purchase prices sharply. In the last week of June, Tsingshan Steel took the lead to release its purchase price of HC ferrochrome for July, up by RMB700/t (USD105/t) from June, which quickly inspired the prices of HC ferrochrome to climb by RMB200/t (USD30/t). However, many plants would resume production and the tight supply in the market is supposed well improved in the coming month. Moreover, the downstream demand sees no significant increase as the stainless steel market in China remains weak. Insiders predict the ferrochrome prices in China would remain relatively stable in July.
The chrome ore prices at Chinese ports flattened out in June generally. The ferrochrome prices increased greatly in June but it did not stimulate the chrome ore prices to go up. Many plants suspended production and slowed down the chrome ore purchase activities this month. Downstream demand stayed soft while the total inventory of chrome ore at Chinese ports stood enormous, so the chrome ore market witnessed sluggish transactions in June. Though some Chinese chrome ore traders made common announcement that they would stop quotation and refuse to sell due to the low prices, it could make little difference to the weak market. This situation would hardly be improved and insiders believe the prices of chrome ore would possibly stay stable relatively in July.
