Chinese tender prices recently have been decreasing over the last three months. Although the current drop is much steadier than last year, now it seems that the market has found a footing floor, below which the supply might not be sustainable.
Over the last two years, when the price drops below 7,000 RMB/t, the availability of the FeCr in China decreases.
Thus, a 7000 RMB level is rather a technical floor for tender prices in China in present circumstances. As the result, we expect the prices to start picking up again in the second half, though with a more calculated and moderate pace.