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China's spot trade for imported ferrochrome remained subdued this week on weaker domestic prices, local industry sources said Thursday.

Spot trade was particularly quiet this week as Chinese traders were away for the Labor Day holiday from April 29 to May 1.

Traders pointed out that Chinese domestic prices (50% basis Cr) held steady at Yuan 6,900-7,100 ($1,111-1,144)/mt this week, equivalent to around 84-86 cents/lb. Domestic prices were lower compared with import offer prices to China that were more than 90 cents/lb CFR China, they added.

"Domestic ferrochrome prices in China stay weak due to prolonged low demand from the stainless steel sector," a Shanghai-based trader said.

Baosteel settled in late April the May delivery price at Yuan 6,900/mt, down Yuan 150/mt from the April's Yuan 7,050/mt, traders said, adding that this reflected the weak market.

"Lower Baosteel delivery price further weakens market sentiment on the domestic ferrochrome market," another trader said. A source close to the producers said most Chinese buyers had no incentive to import because of the higher price.

Traders in China said that offer prices for Indian-origin high carbon ferrochrome (58-60% Cr, 6-8% C) imported into China were last heard at around 93-97 cents/lb. "The wide price gap between Chinese domestic and import prices are due to continuing slowdown in imports," another trader said.

• [Editor:Mango]