SMM

SHANGHAI, May 19 (SMM) - SMM predicts that the prices of high-carbon ferrochrome will rise in May, with the retail prices between 9,000-9,300 yuan/mt (Cr50%). Stainless steel production is expected to increase significantly to 3.15 million mt in May, which will greatly boost ferrochrome demand. Market players had expected Tsingshan Group to slash its May high-carbon ferrochrome bid prices, but the actual bid prices turned out to be the same as its April bid prices, encouraging some ferrochrome plants to resume production. However, ferrochrome plants in south China were still suffering losses and thus refrained from resume production. Oversupply in the ferrochrome market is expected to ease somehow in May. Firm chrome ore prices will offer cost support to ferrochrome prices. However, with stainless steel market entering the off-season and rumours saying that some stainless steel mills will undertake maintenance in June, high-carbon ferrochrome prices will see limited upside room this month.