Ferro Chrome prices have plummeted as the market witness weak trading activities.
“A recent degradation in the demand of Ferro Chrome has encouraged its buyers to explore the floor price while offers of the commodity have been sinking continuously,” said a producer source referring to the lower counter-offers he has been receiving.
Moreover, he also revealed that some of the participants have created a panic in the market, diverting the potential buyers from making the purchases. He referred it as “market exploitation” by the participants who are speculating the commodity’s price to bottom out soon.
SteelMint assessed the Ferro Chrome offers at INR 75,000/MT (Ex-Odisha), while some of the deals are heard to have concluded at lower offers by the sellers who are under selling pressure.
Demand from China has diminished to a greater level as the Indian producers are looking to the European market to sell their commodity. Export offers are assessed at 86 cents/lb CNF China, 94 cents/lb CNF Japan and 93 cents/lb CNF Korea.
Steelmint learned that the Chinese buyers are trying to measure the lowest Indian Ferro Chrome offers without any clear intention to make the purchase.
“The pollution level of China is expected to remain high during the onset of the winter season and will clear out as it moves in,” said another source expecting the demand to rebound during the proper winter season.
He also added that once the prices find stability, trading activities will begin which is currently being halted due to a speculative market.
On the future outlook, Ferro Chrome prices are expected to remain under pressure with high chances of moving down further.
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