Chinese FeCr import prices surge 4-5 cents/lb
Chinese import prices of India-origin high carbon ferro-chrome rose to 82-84 US cents/lb cfr Chinese main ports in the 14 December week, up 4-5 cents/lb from 77-80 cents/lb at the beginning of December on strong demand and tight supply.

A Shanghai-based trader cites talk of deals at 85-86 cents/lb but most market participants in China and India told Steel Business Briefing this is not yet a mainstream price. Offer prices were also heard higher at 85-87 cents/lb in the week, up from 82-84 US cents/lb a week ago.

Supply is tight in both India and China, sources say. “People do not have materials now. Many are already sold out till January,” says an Indian exporter. In China, domestic prices have also risen as smelters are forced to shut production due to higher electricity tariffs, winter power outages and rising chrome ore prices, sources in China say.

The tight supply and usual stockpiling by mills prior to the Chinese New Year holidays could see domestic and import prices of FeCr continue rising, predicts a north China-based trader. But he noted that the current increase may only continue until the Spring Festival in February when both the winter season and stockpiling end. And if the stainless industry remains sluggish then, this will be another dampener on FeCr prices, sources added.