China's leading stainless steel mills have raised their ferro-chrome tender prices for May deliveries, with one offering an additional payment for extra material delivered, incentivizing some smelters to increase their deliveries.
But not all suppliers are enticed by the price hike because of a strong spot market and expectations of further price gains in the near term, Fastmarkets has learned.
Taiyuan Iron & Steel (Tisco), Tsingshan Group and Baosteel all released their monthly tender prices for high-carbon ferro-chrome over recent weeks,
raising their offers by 250 yuan ($35) per tonne.
As a result, Fastmarkets'
ferro-chrome contract 6-8% C, basis 50% Cr, ddp China rose to 5,700-5,900 yuan per tonne on Friday May 8, up by 4.5% or 250 yuan from 5,450-5,650 yuan in the previous month.
But market participants have told Fastmarkets the increase fell short of expectations of around a 300-500 yuan per tonne increase, based on incremental increases in the upstream chrome ore market and lingering concerns over supply tightness.
Fastmarkets' South Africa UG2 concentrates index, basis 42%, cif China was most recently at...