High-carbon ferrochrome and charge chrome spot prices into China softened slightly this week under pressure from domestic ferrochrome supplies, market sources said Friday.
Platts assessed the spot import price of 48-52% grade charge chrome at 68-69 cents/lb CIF China Friday, down from 73-78 cents/lb CIF China a week earlier, and 58-60% grade high carbon ferrochrome at 71-72 cents/lb CIF China, down from 68-74 cents/lb CIF China over the same period, in thin trade.
China's stainless steelmakers including Baosteel Group, Taiyuan Iron & Steel and Jiuquan Iron & Steel were reported to have released their August ferrochrome procurement prices earlier this week, with Baosteel at Yuan 5,890/mt ($887/mt), down Yuan 240/mt from July, and the other two at Yuan 5,790/mt, down Yuan 190/mt from a month ago, according to market sources.
"The drops are within expectations, as Baosteel has been reducing its presence in the stainless market, focusing more on the high-end carbon steel market by shutting down a blast furnace for stainless production in late June in the Shanghai headquarters," a Shanghai-based trader said.
Chinese stainless steel mills typically conduct maintenance at their plants or reduce output in July and August amid hot summer weather, reducing demand for ferrochrome.
Chinese traders reported receiving limited but lower offers for both charge chrome and ferrochrome from Indian suppliers this week, who closely monitor China's domestic ferrochrome price changes to stay competitive.
An Indian trader admitted halting offers to China amid Chinese price declines for August as "it is too low to be attractive," but was still offering to Japan at $74-$75 cents/lb CIF Japan, or last week's level.
Over the week, South African 40-42% UG2 ore was reported to have exceeded $160/mt CIF China, in line with market expectations.
