Asian major stainless steel makers have raised prices of 400 series stainless steel to cover the higher costs of chrome. Ferro-chrome prices have been rising since the middle of last year due to a combination of strong demands for low-nickel stainless steel and supply tightness.

Global major stainless steel producers have produced more ferritic stainless than austenitic stainless due to higher prices of nickel since the middle of last year. For 430 stainless steel, ferro-chrome price is a feature than nickel in the surcharge calculations. Low-carbon ferro-chrome prices are currently quoted at all-time highs of US$4.10/lb, while high-carbon ferro-chrome increased to US$2.55/lb. Moreover, price of low-carbon could reach above US$5/lb.

Moreover, downstream home appliance producers are using more 400 series stainless to reduce production costs. Ferritic stainless (400 series) contains a chrome content ranging from 18~25 percent.

South African has around 40 percent of the world’s ferro-chrome production, but those ferro-chrome producers were forced to cut production due to the electricity shortage. China’s miners also reduced their production output due to snowstorms.

Market analysts forecast that the strength of the sentiment will continue in next few months, as stainless steel market will see a real improvement from the second quarter.