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Residential place rate higher on supply rigidity

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Paaske Strickland
The residential spot price of 50% Cr Chinese high-carbon ferrochrome on Wednesday, January 21, was assessed at Yuan 6,400-6,500/ mt (equivalent to 78-79 cents/lb), including 17% BARREL as well as distribution, up from Yuan 6,350-6,500/ mt a week ago in the middle of supply tightness.

Some market participants have actually described present market uses as unclear. Deals for area product were heard as high as Yuan 6,700-7,000/ mt this week, for shipment to numerous areas in the country. However resources said such prices are not tradable.

Most secured the current tradable cost at Yuan 6,400-6,500/ mt.

A Beijing-based trader stated Yuan 6,600/ mt is tradeable in southern China currently, while a Beijing-based market viewer said some Inner Mongolia manufacturers in the north are still providing at Yuan 6,300/ mt ex-works.

Both price indications were not taken into consideration for the evaluation, as no other resources have shown rates as low or high.

"Supply to the large mills under monthly contracts is according to normal. However if you're wanting to acquire 500 mt or 1,000 mt in the area market currently, product is hard to get and also supply rates are extremely high," claimed an authorities with a main China mill.

Area supply is limited in the market now as ferrochrome vendors are concentrated on covering term agreements, and also due to production cuts and deductions in southern China, claimed sources.

solvents on the instructions of major stainless steelmakers' February purchase costs turned blended this week.

Some industry individuals said they currently do not eliminate price rises for February deliveries as a result of the place supply tightness.

Yet there are still others who anticipate February prices to be rolled over from January, and even decreased due to a weak stainless steel market.

This was a little on the other hand with last week, when most forecasted rollovers or cuts for February prices.

The country's largest stainless steelmakers are anticipated to work out February distribution prices with ferrochrome suppliers around end-January.
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Paaske Strickland
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