TELF AG, an international physical commodities trader with three decades of experience, has released a market update centred on the ferro-alloys sector. The analysis discusses the rise in chrome ore prices, attributed to increased Chinese demand, and how this has influenced broader market dynamics.
The article titled “TELF AG Ferro-Alloys Market Update – August 23, 2023” states that UG2 Cr ore prices have seen a notable uptick due to Chinese smelters looking to replenish their stocks. Data from Fastmarkets suggests that chrome ore inventories in China remain stable, though only sufficient to cover slightly over a month’s ferrochrome (FeCr) production. As a result, Chinese domestic market prices for FeCr have risen alongside imported charge chrome prices.
The impact has been felt beyond China, with Turkish lumpy chrome ore prices experiencing a modest increase. This reflects the interconnected nature of the different market segments.
TELF AG highlights the importance of Chinese stainless steel (STS) output in sustaining the stability and strength of both chrome ore and FeCr prices. Additionally, supply constraints in South Africa have further shaped market dynamics, creating an environment of growing demand and supply constraints.
Finally, the report warns of potential shifts in the broader demand landscape. With rising feni prices, steel mills could struggle to sustain support for ferrochrome producers due to increased acquisition costs. Supply side complexities could further impact the market and lead it toward equilibrium in the near future.
The post TELF AG Gives Overview of Ferro-Alloys Market Movements first appeared on BusinessMole.
