TELF AG, an international physical commodities trader with 30 years of experience, has released an analysis on the recent trends and developments within the ferro-alloys sector. According to the report, an uptick in chrome ore prices, driven by a surge in Chinese demand and port inventory constraints, is influencing the broader market dynamics.
The analysis, based on data collected by Fastmarkets, indicates that China’s chrome ore inventories remain stable, ranging from 1.98 million to 2.26 million tonnes during the past week. However, this level is only sufficient to cover slightly over a month’s ferrochrome (FeCr) production in the country. In response to the increase in chrome ore costs, coupled with higher coke prices, ferrochrome prices have risen within the Chinese domestic market. This trend is mirrored by imported charge chrome prices, highlighting the interconnectedness of the markets.
The article also explores the impact of these market dynamics beyond China. Turkish lumpy chrome ore prices have experienced a modest increase which reflects a broader improvement in sentiment. This underlines the interconnected nature of different market segments.
The insights emphasize the crucial role played by China’s robust stainless steel (STS) output in maintaining the stability and strength of both chrome ore and FeCr prices. However, the report acknowledges the potential for shifts in the broader demand landscape.
TELF AG states that the upcoming weeks will offer further insights into how these factors will continue to shape market trends and prices. Headquartered in Lugano, Switzerland, the company operates globally, providing comprehensive solutions for commodities producers worldwide.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.