The gap between China's import and domestic spot prices narrowed this week as domestic prices rose, reflecting higher chrome ore prices, market sources said Friday.
S&P Global Platts assessed the Chinese spot import price of 58%-60% grade at 75-76 cents/lb CIF China Friday, up from 74-76 cents/lb CIF China a week ago, and of 48%-52% grade at 75-82 cents/lb CIF China, flat from a week ago.
One Indian producer rejected a Chinese mill bid at 74-75 cents/lb CIF China due to limited stocks, while charge chrome trades were not reported this week.
China's domestic spot ferrochrome prices are rising on the back of higher ore prices, that rose 8%-13% in the past three weeks, sources said.
A Beijing-based analyst said spot prices Friday were Yuan 6,000/mt (68 cents/lb) ex-plant, up Yuan 150/mt from a week ago.
The Indian producer said he has heard trades at Yuan 6,200/mt this week.
Domestic spot prices were higher than the Chinese stainless steelmakers' September purchase prices. BaoSteel price was Yuan 5,890/mt (66 cents/lb) ex-plant, flat from August, Tsingshan also flat at Yuan 5,790/mt, while Taiyuan was Yuan 5,740/mt, down Yuan 50 from August, market sources said. Platts could not confirm with the mills though.
Chinese spot ferrochrome prices, both domestic and import, typically follow the monthly mill prices. European steelmakers also use the Chinese mill prices as a reference when negotiating quarterly contract prices with a major South African producer.
"The Chinese mill official said ferrochrome bid prices were reflecting poor stainless steel demand, cutbacks in stainless output, and the need for the mills to lower raw material costs. But ferrochrome suppliers also have higher raw material costs to pay, and we cannot follow the Chinese mill index," said a source with the Indian producer.
The Japanese spot import price Friday was assessed at 76-77 cents/lb CIF Japan, unchanged from a week ago.
Another Indian producer's indication was 75 cents/lb FOB India, which would be around 78 cents/lb CIF basis, for 10-50 mm lumps with minimum 60% chrome, maximum 3-4% silicon, 8-9% carbon, 0.04% phosphorous and 0.05% sulfur, said a Japanese trader. The trader did not buy.
"Japanese buyers are waiting for the European fourth quarter price negotiations," said the trader. Outside of Japan, a South Korean mill was heard bidding 75 cents/lb CIF Busan for any grade.
A trader indicated 80 cents/lb CIF to a Taiwanese buyer, for charge chrome with minimum 53% chrome, maximum 5% silicon, 8% carbon, 0.03% phosphorous and 0.05% sulfur, but has not made sales yet.
