Chinese chrome markets enjoy further gains

Upward momentum continues in Chinese ferro-chrome markets, with Chinese stainless steelmaker Tisco increasing its high-carbon ferro-chrome bid price by RMB980/tonne for June to RMB6,180/tonne. Tisco reportedly intends to purchase its normal quantity of 60,000 tonnes of domestic high-carbon ferro-chrome in June at the new higher price. We expect to see other Chinese stainless mills increase their June bid prices as well in the coming week.

The Chinese stainless industry is also driving other alloy prices higher, with Chinese molybdenum prices posting notable gains. Chinese molybdenum concentrates prices have improved to RMB950-1,050/tonne this week from just RMB830-850/tonne at the start of the month. The combination of reduced supply, with Chinese molybdenum mines announcing a joint production cut earlier this month, and improving demand from Chinese stainless mills are spurring prices higher.

Upward momentum in molybdenum prices has faded in Europe, however, with prices undergoing a downward correction over the past week. European ferro-molybdenum prices slipped to $19.00-19.50/kg after soaring to $19.50-20.30/kg, while molybdic oxide prices fell to...


Amy Bennett

June 02, 2016

00:00 GMT