Transport problems support China’s domestic ferro-chrome market

The ferro-chrome price in China has jumped in the week to Friday February 7 after road travel restrictions imposed by the authorities to control the spread of the novel coronavirus led to problems with raw material supply and deliveries of alloy to stainless steel mills.

Fastmarkets’ price assessment for ferro-chrome, spot 6-8% C, basis 50% Cr, ddp China, was 5,900-6,100 yuan ($844-872) per tonne on Friday February 7, up 200 yuan or 3.3% from 5,700-5,900 yuan per tonne the previous week.
Since the coronavirus outbreak, authorities have tightened road transport restrictions and delivery trucks are not allowed to travel through many counties and villages. As a result, delivery costs have escalated, according to market participants.
“Even though buyers are willing to pay more, it is now very hard to find available delivery trucks,” a trader said.

Some ferro-chrome producers have stopped quoting prices over the past week,...

Published

Jon Stibbs

Siyi Liu

February 10, 2020

17:17 GMT

London, Shanghai