TEX reported that spot price of high carbon ferrochrome in China is now moving to change. Domestic price of this ferroalloy was so far on a straight way to fall but has rallied to a level of CNY 8,300 to CNY 8,400 per tonne of material from the beginning of August 2010.

The level of price for high carbon ferrochrome, which major stainless steel companies in China had purchased until a late part of July by units of several thousand tonnes through tenders, was in the range of CNY 7,800 to CNY 8,200 per tonne of material.

It is still opaque whether this rally of spot price for high carbon ferrochrome in China will be able to continue or not. The reasons, why spot price of this ferroalloy in China has turned to rise, are LME nickel price has rebounded to a level of USD 20,000 per tonne and accordingly, a revival in production of stainless steel is expected, the flood, attacked a wide area of China covering Liaoning province to Hunan province, has caused a confusion in inland transportation and market price of chrome ore to be imported by China as raw material has bottomed out and is moving to rise, having also left temporary factors.

However, reflecting a rally of domestic price for high carbon ferrochrome, the consumers concerned in China are interested in importing this ferroalloy and considering to purchase high carbon ferrochrome from overseas sources, if they could have obtained the offers at low prices, but the price considered by consumers to bid is supposed to be lower than 100 US Cents per pound of Cr CIF China.

(Sourced from TEX Report Limited)