While the major Chinese stainless steel mills are expected to release their September tender prices for domestic ferro-chrome this week, the majority of market participants expect a price increase in near future tenders, including for September, Fastmarkets understands.
Some market participants also long for such a price hike to boost the overall ferro-chrome market, which has been sluggish under excessive supply despite rising production costs, market sources said.
Fastmarkets’ ferro-chrome contract 6-8% C, basis 50% Cr, ddp China, tender price held at 6,050-6,300 yuan ($855-890) through July and August, after a sharp drop of 450-500 yuan per tonne. That drop also sent the tender price to its lowest since June 2017.
Fastmarkets examines whether there are substantial drivers behind the anticipated increase ahead of the September tender price release.
Ore momentum still in check
The majority of market participants who are expecting a rise in the tender price have cited as the key driver the rising production costs for smelters. Sources pointed to the chrome ore price recovery seen during the second half of July, which has regained some momentum in the past week, as well as looming…