内页banner

The Chromium Industry Half-Year Report

Jul 19, 2024

 

Chromium Iron Market Overview

First Quarter Review:

During the first quarter, large steel tender prices were stable, with the main market price around 8,600 yuan per 50 basic tons. Tsingshan announced a significant increase in April's chromium iron steel tender price, up by 500 yuan per 50 basic tons, exceeding market expectations and boosting the confidence of the entire industry chain. Retail prices followed suit with an increase.

📈 From April to May, chromium iron prices experienced a slight correction of 200 yuan per 50 basic tons. As the market sentiment for Tsingshan's long-term contract price increase weakened, and the stainless steel market did not show significant improvement, the retail price of chromium iron began to decline after struggling to rise.

📉 From May to June, chromium iron prices rose again due to the slow recovery of the stainless steel market. Tsingshan's flat tender for June was higher than the market's earlier estimates, temporarily halting the downward trend in retail prices. Although the stainless steel industry entered a slow season in June and faced a short-term downturn, the upstream chromium ore price did not adjust, which strongly supported the high cost of chromium iron. On the other hand, the decline in nickel iron prices temporarily eased the cost pressure on steel mills, limiting their pressure on chromium iron prices, thus keeping the short-term chromium iron prices firm.

Supply and Demand Situation:

In 2024, the downstream stainless steel industry maintained high production, which provided certain support for the demand of chromium iron. Coupled with high steel tender and retail prices for chromium iron, factories maintained a certain profit margin, keeping the production rate at a high level. With the commissioning of several new projects in the north and the resumption of production in the south, China's high carbon chromium iron output from January to June 2024 was 4.3423 million tons, a sequential increase of 10.47%, and a year-on-year increase of 28.68%.

📊 The domestic medium, low, and micro-chromium iron capacity base is large, and the downstream demand has kept the operation rate at a high level throughout the first half of the year. China's medium, low, and micro-carbon chromium iron output from January to June 2024 was 354,900 tons, a sequential increase of 8.7%, and a year-on-year increase of 26.75%. With the commissioning of Tsingshan's Indonesian chromium iron projects, Indonesia's chromium iron capacity showed a significant increase. Tsingshan Group's Indonesian chromium iron output from January to June 2024 was 340,000 tons, a sequential increase of 65.05%, and a year-on-year increase of 136.11%.

Second Half of 2024 Market Trend:

The market trend for the second half of 2024 is expected to be weak and stable. Stainless steel consumption did not meet expectations, and although production remains high, there is a slight surplus of domestic chromium iron supply. Steel mills are keen to lower prices, and the cost of chromium ore continues to rise, pushing factory profits into losses. Some planned projects have been postponed, and some factories are facing production cuts due to losses. However, the scale of previously invested projects is large and continues to release increments, and it is expected that the surplus of chromium iron in the second half of 2024 will still be in excess, but the situation is expected to improve.

Americ Energy (CHINA) Co., Ltd. Introduction:

Americ Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.

Contact Information:

  • Website: www.metal-ae.com
  • Email: ae@americenergy.com
  • Phone: 13521210668
  • whatsapp: 13521210668
  • Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China

Need Help? Chat with us

Leave A Message
If you are interested in our products and want to know more details,please leave a message here,we will reply you as soon as we can.
Submit
Contact us #
+86 13521210668

Our hours

Mon 11/21 - Wed 11/23: 9 AM - 8 PM
Thu 11/24: closed - Happy Thanksgiving!
Fri 11/25: 8 AM - 10 PM
Sat 11/26 - Sun 11/27: 10 AM - 9 PM
(all hours are Eastern Time)

Home

Products

whatsApp

contact