Weak demand for high carbon ferrochrome still continues before the New Year Holidays (January 22nd to January 28th 2012), but there seems a sign of recovery in demand as the production cutback which widened during December takes effect. In Hunan and Sichuan, spot supply were reportedly short due to the quickly spread production curtailment, and seller became somewhat reluctant to offer spot. This is one of the signs of silver lining for the market participants who have been waiting for recovery.

Recent price movement of high carbon ferrochrome (Cr: 55%, C<10%) for domestic destinations was, CNY 7,600 to CNY 7,700 per tonne on December 10th 2011, CNY 7,600 to CNY 7,900 per tonne on December 20th 2011, CNY 7,600 to CNY 7,900 per tonne on December 29th 2011, CNY 7,900 to CNY 8,100 per tonne on January 11th 2012 (in Tianjin market). The price apparently bottomed out in December and took the modestly rising tide after the opening of 2012.

In addition, according to a local media in China, TISCO's planned production of stainless steel in 2012 is 3.30 million tonnes as compared to 3.02 million tonnes in 2011, up by 11% YoY and the media forecasts that consumption of high-carbon ferrochrome and demand for the imported chrome ore in 2012 will both increase. On this basis, optimists have a good reason to expect a firm recovery of high carbon ferrochrome market before long.

(Sourced from TEX Report Limited)