Baosteel announces July ferrochrome buying price

The pattern has been finalized. Baosteel raised its July fejrochrome buying price by rmb 700 to rmb 7,800 per mt (around 87¢ per lb based on current exchange rates). As a result there is a 51¢-per-lb spread between the Chinese delivered price and Glencore’s third-quarter benchmark.

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TAN
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TAN

Based on your articles it seems clear that you have a disliking for glencore and therefore have nothing positive to ever say about the Cr market even when it is as clear as day that the market is in fact strengthening. There might be a spread difference of 51 USC on the headline number of the BM but we all know no one buys charge at this number and taking into account the discount to the BM the spread is around 25-35 cents depending on whom is buying. This is normal.

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Tom Rosensweet

What would say is the current relationship between the price Chinese mills pay for domestic charge chrome and the CIF price they pay for imports?

Tan
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Tan

(a) CIF China Spot is currently at 98 c/lb. (b) Chinese domestic material is 52% Cr and Baosteel/TISCO/Others rates could be for that spec. Therefore, RMB 7800 /MT (i.e. USc 53.44 /lb) works out to be 103 /lb.cr. FYI.