China's Baosteel has cut its high carbon ferrochrome (50% Cr) July purchase price by Yuan 50/mt ($8/mt) to Yuan 6,550/mt (equivalent to 80.6 cents/lb), delivered with 17% VAT on cash terms, a company official confirmed Tuesday.
For half payment in cash and half in acceptance bill, the price of Yuan 6,600/mt would be applicable instead.
Baosteel's June purchase price was at Yuan 6,600/mt, full payment in cash.
Jiuquan Iron & Steel has also tabled its July purchase price at Yuan 6,550/mt, full payment via bank acceptance bill, said industry sources. The price and payment method are unchanged from June.
"Many mills are trying to pressure ferrochrome prices lower to decrease their production costs as they are unable to do so for their nickel raw material prices," said the Baosteel official.
Market participants said the decline in Baosteel's price was no surprise as its June price was considered high in the market.
Chinese domestic spot prices of high carbon ferrochrome would likely remain stable following the price announcements, said industry watchers.
"There shouldn't be any major impact to the market unless Taigang makes a significant price cut," commented an official with an east China mill.
Shanxi Taigang Stainless Steel (Taigang) had yet to determine its July price as at Tuesday afternoon but most sources are expecting the steelmaker to keep prices unchanged or cut prices by Yuan 50/mt from its June price of Yuan 6,350/mt.
Domestic spot prices of 50% Cr Chinese high carbon ferrochrome were at Yuan 6,400-6,600/mt last Wednesday, unchanged on the week.
Jiuquan Steel officials could not be reached for comments.
