China stainless giants hike FeCr bids in April

China's leading stainless steel producers Tsingshan Group and Taiyuan Iron and Steel Co. (TISCO) have lifted their high-carbon ferrochrome (HC FeCr) procurement prices for April, reflecting tightening market fundamentals and strong producer sentiment.

Tsingshan, the country's largest stainless steelmaker, announced recently it was raising its bid for April delivery by Yuan 150/tonne ($22/t) to Yuan 8,395/t (50% Cr basis), or $1,218/t, including tax and delivery, cash payment. TISCO, a large-scale steelmaker in North China, followed suit, also raising its April purchase price under long-term contracts by Yuan 150/t to Yuan 8,195/t on the same basis, according to market sources.

The increases align with market expectations, as ferrochrome producers are keenly intent on holding prices firm amid supply constraints, Mysteel Global notes.

Domestic FeCr production is facing disruptions. According to the latest Mysteel survey, a ferrochrome smelter in Inner Mongolia has recently suspended operations at two 36,000 KVA rotary kiln-electric furnaces (RKEFs), reducing monthly output by an estimated 13,000 tonnes. Another smelter in the region plans to halt three 33,000 KVA RKEFs and three 25,500 KVA RKEFs for annual maintenance from April through May, cutting monthly production by a further 45,000 tonnes.

Import volumes have also tightened sharply. Data from the General Administration of Customs showed that China's HC FeCr imports plunged 51.6% year-on-year to 265,135 tonnes in the first two months of 2026, driven primarily by an 83.3% slump in shipments from South Africa, which fell to just 40,666 tonnes, as Mysteel Global reported.

Stainless mills in south China have mostly relied on term contracts for supply and are facing tight spot availability, according to market sources. The northern market has emerged as the primary source for spot transactions. A few producers with limited sales pressure are offering at higher levels.

On March 25, Mysteel assessed the price of 55% high-carbon FeCr in Inner Mongolia, the key reference price in the domestic FeCr market, higher at Yuan 8,700/t, 50Cr, ex-works including VAT, up Yuan 150/t from a month earlier.

Cost pressures continue to support smelter pricing, with shipping rates rising amid global logistics disruptions and chrome ore costs climbing.

On March 25, Mysteel assessed the portside price for 40-42% South African chrome concentrates at Yuan 61/dmtu, higher by Yuan 2/dmtu from the previous month.

Seaborne prices have followed a similar upward trend. Mysteel assessed the CIF price for 40-42% chrome concentrates shipped from South Africa to Tianjin at $312.5/dmt on the same day, a rise of $14.5/dmt from a month earlier.

This has translated to smelters incurring higher input costs, with the average cost for producing HC FeCr using the semi-closed submerged arc furnace-electric furnace route as of March 24 rising to Yuan 8,224/t in Inner Mongolia, up Yuan 179/t from one month earlier.

Robust demand for the ferroalloy from stainless mills has also supported HC FeCr prices, with stainless steel mills operating at high capacity, Mysteel Global learned. According to Mysteel's survey of 43 Chinese mills monitored nationwide, total domestic crude stainless steel output is expected to reach 3.7 million tonnes in March, surging 36.3% from February and up 5.2% year-on-year.

Looking ahead, with FeCr smelters showing a strong determination to hike prices and supply remaining tight, the ferrochrome market is expected to hold steady in the near term, Mysteel Global suggests.

Source:Mysteel