Spot ferrochrome prices in China have fallen by over 10% over the week this week on major stainless steel producers cutting their procurement prices for February supplies, market sources said Friday.
S&P Global Platts assessed spot charge chrome price at $1.04-1.05/lb CIF China Friday, down 15% from last Friday's $1.15-$1.30/lb CIF China, and spot high-carbon ferrochrome price fell to $1.04-1.05/lb CIF China Friday, down 11% from $1.15-$1.20/lb CIF China as of January 13.
"Both Taiyuang Iron & Steel or Tisco and Tsingshan Steel, China's two top stainless producers, cut their high-carbon ferrochrome procurement prices by Yuan 800/metric ton ($117/mt) from January for February deliveries, known to the market during the week of January 16-20," a Shanghai-based trader said Friday.
"This has immediately pressured the import market sentiment and prices, and traders are unwilling to pay more than 1.04-1.05/lb CIF China," he added.
A ferrochrome trader in India acknowledged the substantial price decrease in China's ferrochrome and charge chrome imports prices, but insisting on offering $1.15-1.20/lb CFR China instead.
"I am not willing to cut my offerings yet, buying enthusiasm from China is limited anyway with the Chinese New Year holiday about to come, so I'd rather wait," he said.
The Japanese high-carbon ferrochrome assessment has remained unchanged over the week at $1.20-1.25/lb CIF Japan Friday, as there has been no spot demand from the Japanese market.
Normally, Japanese mills have no need for spot supplies at the beginning of every year normally, according to a Japanese trader.
