Ferro Chrome offers are observed to have moved up marginally as market rest on anticipation.
Ferro Chrome offers witnessed a head start with the pre-lunar purchase by China have most Indian producers with little inventory, while a rise in Chrome Ore prices coupled with supply shortage also lent support.
“Producers have raised their offers on anticipation as they expect China to open on a positive note,” said a source explaining the reason for the rise in offers.
SteelMint assessed Ferro Chrome offers in a range of INR 82,000-82,500/MT (Ex-Odisha), while few producers were heard to have concluded above the current levels.
Another source pointed towards rising Chrome ore prices in global market. Moreover, rising Ferro Chrome spot prices in Europe due to supply shortage has also added weight to rising prices, he added.
It is noteworthy that as winter is closing in, electricity cost in South Africa has started moving up, pushing the cost of production of the commodity upwards.
Meanwhile, an appreciated Rand against USD has fortified the South African producers to stay put on their prices while creating an opportunity to raise the same.
No deals are being concluded in China as their market is temporarily closed due to Spring festival holidays, hence the offers remain unaltered at 96.5 cents/lb. While demand from Japan still remains limited with its offers remaining stable at 101-102 cents/lb and offers to Korea at 100-101 cents/lb.
On the future outlook, market participants are confident about a further rise in Ferro Chrome prices as they await China’s return to the market. Hence, all is dependent on how the Chinese react.
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