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According to a recent rumor that China imported large quantities from South Africa, ferrochrome, the major steel mills are prepared to continue lowering bid price of ferrochrome is expected to post further loosen domestic ferrochrome market.
The current trading price of high carbon ferrochrome in 8600-8700 yuan / ton (1,289-1,silicon dioxide powder,340 U.S. dollars / ton), lower than before.
Shanghai, a trader said: "In the steel plant announced in January before the tender price, the market was very quiet,[link widoczny dla zalogowanych], a lot of market participants predict that steel plant operators to further reduce the tender price."
In 2010 on the International Association of chromium,[link widoczny dla zalogowanych], Baosteel began in January to manufacturers inquiry, quote only 8,500 yuan / ton bid price, fell 200 yuan higher than in December. Sichuan, a producer express their views, few manufacturers are willing to ship this price, because production costs on account of electricity charges rose by 8,600 yuan.
However, according to market sources, the domestic ferrochrome stocks higher than normal tonnage, estimated that manufacturers have had to accept lower prices.
In addition, according to sources, about 30 million tons of domestic steel mills ferrochromium was ordered arrived the next few months will come to order price is 96-98 cents / lb. However, a manufacturer of Sichuan, said: "This is just a rumor only. Indeed, because of poor market performance in Europe and America in recent months South Africa has increased the export intensity of ferrochrome to China, but I think South Africa is not so much The ferrochrome capacity for export. "
Oct. 30 million tons equivalent to the total imports of Chinese high-carbon ferrochrome 3 times, but also the equivalent of the month, exports to China, South Africa 7 times.
A trader in Shanghai said: "I agree with the truth of rumors,[link widoczny dla zalogowanych], but expressed doubts as to its accuracy."
She expected the Chinese high-carbon ferrochrome in Q1 of next year before the market will continue to remain weak, because the major steel mills have enough stocks for consumption of ferrochrome. Take some time before the market in order to increase consumption of imports, estimated at slightly lower prices later, but based on the cost of support will not be much lower rate.
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