Ferro Chrome market witnessed no change in its pricing as Chinese market closed on account of Spring Festival holidays, and the market awaits further direction.
A strong demand from China prior to its lunar year festival drove the prices upwards as they looked to stock before. Logistical issues during the holidays also lent support to active pre-holidays buying. However, the same has dried out now as Indian Ferro Chrome producers claimed to have concluded no deals in recent days. Chinese buyers are expected to return to the market, not before the end of the month.
Active buying trend prior to lunar year has been the core reason for the hike in Ferro Chrome prices, followed by rising chrome ore prices from South Africa owing to the appreciation of South African Rand against the USD.
A source from South Africa claimed that Chinese buyers were inquiring Chrome Ore in large quantities to replenish their inventory, hence creating an opportunity for the South African producers to raise their offers.
Moreover, another source added that ban on illegal mining in South Africa has been another hurdle which affected the Chrome ore prices significantly. South African 40-42% Cr UG2 chrome concentrate prices increased to USD 230-235/MT.
SteelMint assessed Ferro Chrome offers remaining relatively unchanged as last heard traded price was 96.5 cents/lb CIF China and no deals have been concluded recently.
However, offers to Japan and South Korea edged up on a bullish sentiment for the commodity but some of the market participants claim to have received lower counteroffers from the region. Ferro Chrome offers to the aforementioned regions are assessed at 101-102 cents/lb CIF Japan and 100-101 cents/lb CIF South Korea.
Producers claim that demand from Japan has been lower than usual as they are they are trying to negotiate the offers on the lower side.
Inquiries for Ferro Chrome in domestic market remains moderate while prices for the commodity moved up marginally to INR 81,000-82,000/MT (Ex-Odisha).
However, few producers claim to have concluded deals for smaller quantity at higher prices.
On the future outlook, demand for the commodity is expected to be soft with its prices remaining stable throughout the Chinese holidays.
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