Major Chinese stainless mills lowered their tender prices for quantity purchases of high-carbon ferrochrome in November. Steel mills’ tender prices began to fall in the last couple of months as the downturn of China’s stainless steel industry showed no signs of improvement.

 

Taiyuan Iron and Steel (TISCO) set its tender price at 6,680 yuan per mt ddp, which is 84.5? per lb, VAT unpaid. The tender is for 50,000 mt. This price is 70 yuan per mt lower than October, and TISCO’s tender prices have fallen 15% since February. Meanwhile, Jiuquan Iron and Steel set its tender price at 6,800 yuan per mt ddp, which is 86? per lb, VAT unpaid, down 50 yuan per mt from last month. The tender is for 25,000- 30,000 mt. Prices for high-carbon ferrochrome are believed to be nearing the bottom as chrome ore prices remain firm in the Chinese market.

 

As imported material continues to hold a price advantage against domestically produced material, China’s imports of ferrochrome continue to increase this year. China imported 1,268,513 mt of ferrochrome in the first nine months of 2013, up 19.8% from 1,059,144 mt in the same 2012 period. Imports were mainly 666,241 mt (607,782 mt in 2012) from South Africa; 361,204 mt (254,076 mt) from Kazakhstan; 189,180 mt (151,730 mt) from India and 27,529 mt (23,276 mt) from Zimbabwe. Imports in September were 186,923 mt vs. 139,824 mt.

 

In September, the main importers were Lianzhong (Guangzhou) Stainless Steel, with 72,419 mt; TISCO, with 31,535 mt; Tsingshan Holdings Group, 21,186 mt; Baosteel Stainless Steel, 10,029 mt; and Zhejiang Tsingshan Steel, 10,013 mt.