Taiyuan Iron and Steel Corporation (Tisco), a major Chinese steelmaker, has reduced its November tender price for high-carbon ferro-chrome by 150 yuan per tonne ($21.10 per tonne), reflecting ongoing concerns about oversupply and weak demand in the stainless steel sector.
Price Reduction in Response to Market Conditions
The new bid price for high-carbon ferro-chrome, effective from October 17, 2024, is set at 7,945 yuan per tonne (approximately $1.01 per pound) on a 50% chromium basis, inclusive of VAT. This price reduction is attributed to an excessive supply of ferro-chrome, with Tisco responding to market conditions that have pressured pricing in the sector. The revised price also signals a possible shift in the Chinese ferro-chrome market, where industry leaders, including Tsingshan, may follow suit and lower their prices to align with the market trend.
Surge in Production and Declining Stainless Steel Output
China’s high-carbon ferro-chrome production reached 5.77 million tonnes between January and August 2024, with apparent demand reaching 8.74 million tonnes. However, actual alloy demand was significantly lower at 8.11 million tonnes, resulting in an oversupply of approximately 630,700 tonnes. Meanwhile, China’s stainless steel production has seen a decline, falling 2-2.5% from August to September, with an anticipated 1% drop in October production. These factors have directly affected ferro-chrome demand, contributing to the reduction in production and further price adjustments in the market.
Ongoing Market Pressures and Production Maintenance
In addition to the weakened demand for stainless steel, maintenance shutdowns by alloy producers in Inner Mongolia in response to falling prices have further strained the market. Despite this, Tisco and other key players are expected to continue adjusting their prices, hoping to bring balance to the ferro-chrome market, though the outlook remains cautious due to the ongoing oversupply concerns.
Leave a Reply
You must be logged in to post a comment.