Ferrochrome--Chinese and European prices rise, while US quotes decline

摘要

Regional ferrochrome market activity has started to wind down towards the end of the year. However, prices in China rose, due not so much to robust demand as to cost increases. Thus Chinese domestic HC spot prices increased Rmb225/t to average Rmb7,225/t delivered in December. While demand has started to slow, from the 20~(th) November electricity prices in China rose, which we estimate raised local production costs by Rmb300-400/t. Further supporting Chinese HC spot price rises is, firstly, a rise in Indian sale prices into China, from 75-780/lb cif China last month to currently 80-81 cents/lb cif China. This has lowered domestic stainless mill's scope for limiting price rises for locally produced HC. Secondly, at the same time there is less incoming material, with Chinese HC imports down 24 percent m-o-m to 154,000t in October, and we expect reduced imports to remain until the end of the year. Thirdly, chrome ore prices have started rising, with Turkish high-grade lumpy ore prices up 10 dollars/t to 280 dollars/t cif China.