High-carbon ferro-chrome bid prices are at a ten-year low
At the beginning of March, China’s top four stainless steel mills cut their high-carbon ferro-chrome bid prices to 4,680 yuan ($723.74) per tonne, the lowest price in nearly ten years. Since December 2015, Chinese high-carbon ferro-chrome bid price has decreased by 1,000 yuan per tonne, including delivery, on a cash basis. The spot price of high-carbon ferro-chrome is much higher than long contract prices now, supported by production costs from strong chrome ore prices.
North China is the ferro-chrome powerhouse
Chinese ferro-chrome producers are mostly located in Inner Mongolia, Shanxi Province, Qinghai Province, Sichuan Province and Guizhou Province. Of which, northern Chinese ferro-chrome producers feed more than 70% of the ferro-chrome demand from Chinese stainless steel mills.