Domestic spot prices of high carbon ferrochrome (basis 50% Cr) in China continued to hold steady week on week at Yuan 6,850-7,000/mt (85-86.5 cents/lb), on a delivered basis including 17% VAT, amid little change in market fundamentals, sources said Wednesday.
"There aren't many strong push or pull factors in the market now to move prices," said a trader in Beijing. "Prices will likely remain stable in the near-term."
Supply in the Chinese market has been abundant due to expanding domestic ferrochrome production capacity and high import volumes, but this has been mitigated by support from chrome ore prices, sources said.
But opinions varied on whether chrome ore prices would continue to shore up Chinese ferrochrome prices.
Prices of Turkish chrome ore have stabilized recently following a rally, while South African chrome prices are firming on strong demand, said a second Beijing-based trader.
"I think South African chrome ore prices could increase further as much of the new capacity that has been commissioned in China uses South African fines. Demand is becoming bigger," he said. Tighter supply can also be expected for Turkish ore as mining activity slows with the winter season there, he added.
A Shanghai trader also noted: "Overseas miners are keeping their offers [for ore] high and they show no signs of lowering their offers at all."
However a trader in Hong Kong said that chrome ore sellers would find it hard to push through the higher offers to smelters given that Chinese domestic ferrochrome prices have remained steady since mid-July.
