Chinese chrome ore, alloy market sentiment heats up on tight supply

Domestic and imported chrome alloy and ore prices in China rose strongly in the week ended Tuesday January 5 after leading stainless steel producers in China Tsingshan Group and Baosteel increased their ferro-chrome tender prices, and alloy producers raised their offer prices and shifted to the spot market, amid rising costs and tight supply.

Tsingshan and Baosteel raised their ferro-chrome tender prices for January deliveries by 200 yuan ($31) per tonne at the end of December.
Taiyuan Iron & Steel had not released its January tender by the time of publication.
As a result, Fastmarkets’ ferro-chrome contract 6-8% C, basis 50% Cr, ddp China price widened upward by 200 yuan to 5,600-6,000 yuan per tonne on Tuesday, from 5,600-5,800 yuan per tonne the previous week.
The 200-yuan-increase would be insufficient to spark increased production given the recent soaring production costs caused by increased coke prices, electricity rate and transportation fees, according to many participants.

Therefore, Xinganglian Metallurgy Group, China’s largest ferro-chrome producer,...


Jon Stibbs

Siyi Liu

January 06, 2021

11:49 GMT

London, Shanghai