Ferro Chrome offers edged up as demand witnessed a surge amid restocking by Chinese traders before the Spring Festival.
“China has been replenishing their inventory prior to the lunar year festival,” said a producer source referring it to be the reason for increasing inquiries.
SteelMint learned that China has been accepting higher prices as their festival is closing in. The spot trades are heard to have been concluded at 94-95 cents/lb CIF China.
“Indian producers are setting their offers to China in line with the Ferro Chrome higher prices achievable in Japan and South Korea, where the commodity is being traded at 100 cents/lb and 99 cents/lb respectively,” said another producer. SteelMint also learned that deals have been concluded to Europe at 104 cents/lb CIF Rotterdam.
An appreciated South African Rand has also played a significant role in increasing Chrome Ore offers in the global market.
Demand in India also remains moderate but has been met with a sudden supply shortage, as a plant producing 2,500 tonnes have had to halt its operation.
SteelMint assessed Ferro Chrome offers at INR 80,000-81,000/MT (Ex-Odisha), while some small quantity deals have also been concluded at slightly higher prices.
On the future outlook, ferrochrome offers are expected to remain stable or might witness further upward movement in the spot market, as sentiment in the market has turned bullish.
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