China's Baosteel has cut its high carbon ferrochrome purchase price by Yuan 50/mt ($8/mt) month-on-month to Yuan 6,650/mt (equivalent to 82 cents/lb), including 17% VAT, for May deliveries, according to industry sources.

The cut was in line with market expectations. Industry watchers had expected and are expecting major stainless steelmakers in the country to either keep their May purchase prices stable or drop them by Yuan 50-100/mt month-on-month because of slow demand.

Shanxi Taigang Stainless Steel and Jiuquan Iron & Steel had yet to table their prices as of Tuesday afternoon. The stainless producers had previously cut their April high carbon ferrochrome purchase prices by Yuan 100/mt on the previous month to Yuan 6,500/mt and Yuan 6,600/mt respectively.

The steelmakers typically set their monthly purchase prices in the second half of the preceding month but there was speculation that the prices would only be revealed in May after Labor Day holidays (May 1-3) in China as the steel producers are in no hurry to purchase raw materials.

Baosteel officials could not be reached for comments.