Ferroalloy online Feb 8, 2023. Recently, the low carbon ferro chrome market may calm down in China, leading to a slight adjustment of the price. The low carbon ferro chrome supplier with a big difference in the quotation.
Price of Ferro Chrome in China Market
The prevailing market prices: LC Ferrochrome C0.25% ￥15200-16000RMB. MC Ferrochrome C:0.1% ￥15400-16200RMB. Micro Carbon Ferrochrome C:0.06 ￥15800-16600RMB Micro Carbon Ferrochrome C:0.03%￥18500-18700 (RMB /60 bases EXW including VAT), it is likely to see a gap of high and low price further expanded.
The Current Price of Low Carbon Ferro Chrome in China
Before the Chinese Spring Festival holiday most of the ferro chrome dealers carried out inventory, the cost is about 14000 yuan /60 bases. Compared with the factory quotation the ferrochrome quotation is more competitive.
In addition, The low bidding price of domestic steel mills inhibits the increase of ferrochrome price. And before the Spring Festival, most steel mills had enough raw materials for 2 months in stock, and the amount of bidding after the festival was less.
At present, the market price is chaotic, rising and falling at the same time, due to slow shipment, some dealers want to make profits as early as possible, accepting the low price.
However, the quotation of most factories remained firm or even increased in some cases. The earthquake in Turkey seriously affected inland transportation, infrastructure, and port operation, and added concerns about the supply of high-quality fine powder, which was already limited. Based on this consideration, the quotation of some factories with no sales pressure in the short term even increased.
Reasons That Increase the Price of Ferro Chrome
“Ferroalloy online” 2023-2-9: Jiangsu Nanjing Iron and Steel February low carbon ferrochrome FeCr55C50 (II type) bidding price 15565 yuan /60 base tons (processing block, acceptance tax to a factory, including bidding service fee), bidding quantity 350 tons, the delivery time before 2023-3-5 days.
“Iron alloy online” 2023-2-7: Since the chrome market resumed last week, the accumulated increase of silicon chromium alloy as high as 600-700 yuan/ton, then the rise from rapid to slow development. At present, 72 brand silicon chromium mainstream offer 11000-11500 yuan/ton (cash including tax factory), and the mainstream transaction price is around 11000 yuan/ton.
During the Spring Festival, silicon chromium alloy factories in Sichuan, northwest, and other places shut down the furnace holiday, resulting in the national production of silicon chromium of fewer than 30,000 tons in January, after the festival in East China, low carbon ferrochrome factories resume work earlier than in previous years, downstream demand is also released in advance, the mismatch between supply and demand, coupled with high chromium prices have also increased, so the price of silicon chromium alloy can rise rapidly.
With profit recovery, some silico-chromium factories began to resume production. Moreover, with the dealers’ profitable resources put into the market, the price trend of low-micro-carbon ferrochrome in downstream has stabilized, and the factories are not very receptive to high raw material prices.
Due to the high cost in Sichuan, it is difficult for the production of silicon chromium alloy to recover to the high level temporarily, which has a certain supporting effect on the subsequent trend of product price.
At present, the low carbon ferrochrome market situation is complex, before the social inventory is effectively digested, the iron price will continue to maintain the shock consolidation state, waiting for the subsequent return of demand to support the price again.