Spot, tender price gap develops in Chinese FeCr market

A price gap between spot and tender prices developed in China’s ferro-chrome market in early October after sellers in the spot market raised their prices because of supply tightness, while major stainless steel mills decided to keep their tender prices flat from the previous month.

Offers heard in the spot market continued to rise after China’s National Day holiday on October 1-7, due to limited availability caused by lasting electricity limitations.
Fastmarkets’ price assessment for ferro-chrome, spot, 6-8% C, basis 50% Cr, ddp China, widened upward by 500 yuan to 11,000-12,000 yuan ($1,704-1,859) per tonne on Tuesday October 12, from 11,100-11,500 yuan per tonne on September 28. The earlier assessment was rolled over on October 5 because of the National Day holiday.
China produced around 400,000 tonnes of high-carbon ferro-chrome in September, which was an 18% drop from the previous month, according to market participants.

“There’s very little spot availability,” a trader said. “Many producers were focused on long-term contract delivery, leaving very few cargoes to offer in...

Published

Jon Stibbs

Siyi Liu

October 13, 2021

12:00 GMT

London, Shanghai