1.Ferronickel: Yesterday, the mainstream ex-factory price for high-grade ferronickel was reported at 1135-1145 yuan per nickel, a decrease of 15 yuan per nickel compared to the previous day.
A steel mill in South China purchased over 10,000 tons of high-grade ferronickel from Indonesia at 1110 yuan per nickel, marking a reduction of 30 yuan per nickel compared to the previous mainstream procurement prices. Consequently, domestic ferronickel ex-factory prices have seen a noticeable decline. While nickel ore prices remain robust, providing some support to ferronickel from a cost perspective, reduced production in steel mills and high import levels have led to an oversupply of ferronickel. In the short term, ferronickel prices are expected to remain under pressure, with attention on the support level around 1100 yuan per nickel.
2.Ferrochrome: High carbon ferrochrome maintained weak stability in its mainstream ex-factory prices, hovering around 8800-8900 yuan per 50 base tons, without significant changes compared to the previous day. The spot prices for chrome ore primarily remained stable, with mainstream quotes for 40-42% South African fines at around 60 yuan per ton, and 40-42% Turkish lumpy ore prices holding steady at approximately 68 yuan per ton.
In addition to chrome ore prices, some coke enterprises in northern regions launched the third round of price increases, seeking an upward adjustment of 100-110 yuan per ton. However, it is worth noting that as of now, downstream steel mills have not accepted the price hike, and coke prices have maintained stability in recent days.
Post the National Day holiday, the overall production costs for high carbon ferrochrome have slightly decreased, relieving some cost pressures for the factories. Nevertheless, most high carbon ferrochrome production enterprises are still struggling to turn a profit. Furthermore, the recent weak downstream demand, along with announcements of production cuts from major steel mills, indicates that the short-term support for high carbon ferrochrome prices is relatively weak, with prices maintaining a stable but slightly weak trajectory.
3.Electrolytic Manganese: Prices in the electrolytic manganese market showed some caution yesterday, with mainstream quotes ranging between 12,000 and 12,300 yuan. As the market approaches a union meeting, some factories have maintained strong quotes, while the mainstream market remains in a wait-and-see mode, with some even exploring slight tentative pricing actions.
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