Indian Ferro Chrome offers witnesses stability as trades remains limited owing to low demand and confusion regarding the near-term movement of Ferro Chrome prices.
A recent rise in lesser-than-expected tender prices by Chinese Stainless steel mills had already created confusion, as it was much lower than the spot prices. Moreover, falling stainless steel prices in China has pressurized the Ferro Chrome prices further.
“We have not been able to conclude any deals with Chinese buyers as they are unwilling to accept higher offers,” said a producer source. The buyers in China are negotiating on much lower prices, he added.
SteelMint learned that Chinese Ferro Chrome producers have sufficient amount of inventory with them which is enough to meet the requirements of domestic Stainless Steel plants and hence buyers are less dependent on imports of the alloy.
Chrome Ore price remain firm at USD 245/MT CIF China for 40-42% grade and is the only support factor to Ferro Chrome prices.
Hence, Ferro Chrome prices have maintained stability before things clear out in the coming days.
SteelMint assessed Ferro Chrome export prices at 99.5 cents/MT CIF China, 104 cents/lb CIF Japan and 103 cents/lb CIF Korea. Producers are quoting higher but are unable to conclude any deals yet.
Offsetting their concerns regarding China, a producer source claimed that demand from Europe has been a support for the prices as they traded at 102 cents/lb FOB India, while deals for smaller quantities are concluded with the USA at 115 cents/lb CIF.
Inquiries for the commodity in domestic market remains moderate while prices failed to move up, remained unchanged at INR 86,000/MT (Ex-Odisha).
On the future outlook, market participants are of the view that any advancement in Ferro Chrome prices is unlikely and are waiting to gain more clarity in the near future.
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