Higher June ferro-chrome tender price boosts Chinese chrome ore, alloy markets

摘要

Spot ferro-chrome prices in China rose last week following the announcement of a higher monthly tender price from a leading domestic stainless steel producer, while a strengthened alloy market sent support to upstream UG2 chrome ore prices. On Thursday May 21, Tsingshan Group announced its ferrochrome tender price for June delivery at 6,397 yuan ($896) per tonne. This marks an increase of 500 yuan per tonne (8.5%) from the previous month’s tender price of 5,897 yuan per tonne. The higher tender price provided a significant boost to market sentiment given that the increase in the May tender price - 250 yuan per tonne month on month - was considered by many to be insufficient to incentivize domestic ferro-chrome producers to resume operations and again offer their material to the market. Ferro-chrome producers have had their profit margins squeezed in recent weeks amid steady increases in the upstream chrome ore price.