A surge in Chrome ore and Met Coke prices coupled with the stocking of Ferro Chrome before festive season in China has spiked the offers of the commodity by 600 RMB to 7,900 Yuan (93 cents/lb) in Chinese domestic market.
Moreover, an appreciated Rand against USD has encouraged the African Chrome Ore producers to increase their offers.
In sight of the same, the Indian producers have also raised their offers to China, considering the above-mentioned price as the benchmark. However, SteelMint assessed the Ferro Chrome prices at around 92 cents/lb CIF China but sellers are trying to negotiate on the higher side.
Demand from Korea continued to be moderate but Japanese market remained quiet as they are observing the market closely. SteelMint assessed Ferro Chrome offers at 95 cents/lb CIF Korea and 96 cents/lb CIF Japan.
“Chinese have elevated their stainless-steel production as some of the producers are heard to have increased their capacity”, said a producer source referring to the source of demand from China. Moreover, the Chinese buyers are stocking up before the Lunar Year festival as logistics during the holidays would get affected, he added.
Another source revealed that some of the Chinese provinces with high Ferro Chrome production capacity have been witnessing power cut by their local government bodies in order to curb pollution in the region. Hence, this has been an additional support to increasing Ferro Chrome offers in the country.
In line with the elevated offers in China, Indian producers are also trying to quote higher but deals have been concluded at around INR 79,000/MT (Ex-Odisha). SteelMint learned that some of the deals for small quantity have been concluded at higher offers.
Some of the producers in India are currently focusing on the domestic market. A source said that he is getting a better price within the domestic market and is confident that higher offers will soon get acceptance.
On the future outlook, market participants were observed to be bullish as they expect Chinese steel mills to raise their offers for February due to the demand-supply mismatch scenario.
Leave a Reply