This is mainly reflected in a significant increase in supply. Under the influence of factors such as epidemic and transport, the output of high-chromium stainless steel rods will be low in 2022. This September, high chromium production is expected to be more than 200,000 tonnes higher than last year. Although production increased in October 2022, it is still low at 464.9 thousand tons.
In the second half of this year, due to the concentration of projects for the renewal and production of high-chrome content stainless steel rods, as production capacity is gradually released, the output of high-chrome content products in October is expected to remain at a high level of more than 650,000 pieces . tons
Imports of ferrochrome also increased significantly. According to customs statistics, a total of 286.5 thousand tons of ferrochrome were imported into the country in August, which is 51.5 thousand tons more than last year, an increase of 21.91%; South Africa has emerged from winter after September and exports of ferrochromium stainless steel rods are expected to increase, leaving the high chromium market supply relatively weak in the short term.
However, demand for processing has weakened. Several domestic steel mills have recently announced plans to curtail production, with maintenance periods centered around November. The industry is more concerned about market demand in the later period.
Overall, the "National Day glory" of last year's high chromium market is difficult to replicate this year, but given the high costs, the room for reduction is also limited. High chrome prices are expected to remain stable and weak after the National Day holiday.
