The Chinese ferrochrome market has held stable in the last few months. Although consumer demand from within the stainless steel industry has been relatively weak, causing tender prices to fall, the market has been supported by tighter market conditions. This includes much lower production levels and higher production costs in southern China where the wet season has ended, which has led to higher electricity tariffs. At present, spot prices for high-carbon ferrochrome are holding at 6,700-6,900 yuan per mt ex producer warehouse, which is $84.7-87.3 per lb VAT unpaid.

 

The spot chrome ore market is also largely quiet as ferrochrome smelters are inactive, and the stock level at main ports is high. At present, there is roughly 2.83 million mt of chrome ore stocked at the main Chinese ports, including 1.33-million mt in Lianyungang, 600,000 mt in Tianjin, 300,000 mt in Shanghai, 420,000 mt in Zhanjiang and 80,000 mt in Fangcheng.

 

In the first nine months of 2013, China imported 1,268,513 mt of ferrochrome, up 19.7% from 1,059,144 mt in the same period of 2012. Imports were mainly 666,241 mt (607,782 mt in the same 2012 period) from South Africa; 361,204 mt (254,076 mt) from Kazakhstan; 189,180 mt (151,730 mt) from India; and 27,529 mt (23,276 mt) from Zimbabwe. In September, imports were 186,923 mt vs. 139,824 mt in September of 2012.