[ferro-chrome.com] Chinese domestic spot prices of high carbon ferrochrome (50% basis Cr) were steady week on week at Yuan 6,850-7,000/mt (equivalent to 84-86 cents/lb) Wednesday as buying activities were limited by more consumers adopting a wait-and-see attitude, China-based industry sources said.

A Jiangsu-based trader said recent spot deals were concluded at Yuan 7,000/mt for prompt delivery to plants.

"Domestic prices are stable," he said. The trader added that he had recently bought Indian-origin ferrochrome (58-60% Cr) to China at 84 cents/lb on a CIF/CFR basis.

 

Some Indian sellers are willing to agree on prices due to the recent weakening rupee against the US dollar, which brings down the costs on export," he added.

Other Chinese traders said offers received for Indian-origin ferrochrome were around 84.50-85 cents/lb on a CIF/CFR basis.

A trader based in Shanghai however, reported no spot deals this week.

"Buyers and sellers are unwilling to reach agreements on prices and hence no spot deals have been reported," she said. "Demand for ferrochrome from stainless steel mills remain weak and they are not in a rush to buy."

She expected prices to hold steady in September.

An analyst from Beijing Antaike, the state-run nonferrous metals information provider, agreed that domestic spot deals in eastern China might be able to settle at the higher end of the market range of around Yuan 7,000/mt.

"But the deals in China's Hebei province in North China region, where more ferrochrome production plants are located, are heard settled at lower prices of around Yuan 6,850/mt due to more supply in the area," she said.

The Antaike analyst added that the ferrochrome market in China showed no signs of pickup in the near future because of the prolonged weakness in domestic demand.

"Prices are likely to hold steady if not going downward," she said.

"Stainless steel producers are buying for hand-to-mouth and they are only keeping limited stocks," she said, adding that the market is lacking positive momentum as domestic demand stays weak.

The stainless steel sector is the largest consumer of ferrochrome.