Market sentiment recovered slightly in the local Chinese market after major stainless steel mills Baosteel and Jiuquan Steel announced unchanged prices for high-carbon ferro-chrome for May delivery, sources said.
Baosteel announced a bid price of 7,650 yuan ($1,211) per tonne, including delivery, early on Friday April 27. This is the same price as for April delivery.
Jiuquan Steel’s latest purchase price, fixed on Thursday, was flat with its April price at 7,650 yuan, including delivery.
“I think Baosteel’s price will be fixed at 7,650 yuan,” a trader in Shanghai said, adding that the market level will start to gain stability in the near term.
In the spot market, prices of high-carbon ferro-chrome stood at 7,600-7,700 yuan per tonne, unchanged from the past week.
“Taigang [the country’s biggest stainless steel producer] may raise its prices a little, at least to 7,500 yuan,” a Beijing trader said.
Earlier in April, Taigang cut its ferro-chrome prices twice to only 7,480 yuan on oversupply in the local market in Shanxi.
“Taigang is likely to raise its price this time, although by a very limited amount, as supply in Shanxi remains sufficient at the moment,” the Shanghai trader added.
Chinese prices for high-carbon ferro-chrome were expected to remain largely steady in the near future, sources said.
“Short-term prices will mostly stay at the current level, and then we’ll see how the chrome ore prices will go,” a Sichuan smelter said.