Indian Ferro Chrome market witness lack of trading as bearish sentiment clouds buyers’ judgment.
“A weak stainless-steel market has hindered Ferro Chrome prices in China,” said a source referring to the high amount of inventory left with its producers. Therefore, they have been lowering the offers to entice buyers.
Furthermore, SteelMint learned that China has resumed its Ferro Chrome production but its demand has been low due to cut in production of stainless steel. Hence, the Ferro Chrome producers are under selling pressure.
Chrome Ore prices from South Africa is reportedly on an upward trend as winter season in the region has elevated the electricity cost and the appreciating Rand against USD has further supported the prices of the commodity.
The Ferro Chrome producers found themselves in a tizzy with the raw material cost rising in a sluggish market for the commodity.
Mirroring Chinese market, Japan, and South Korea has also been quiet and deals are hardly being concluded as there is a mismatch between price ideas of buyers and sellers. Export offers are heard at 98 cents/lb CIF China, 103 cents/lb CIF Japan, and 102 cents/lb CIF Korea.
Ferro Chrome market in India has also taken a toll as most of the producers were unable to conclude deals and no buyer is willing to pay at previous week’s levels. However, offers are lowered to INR 85,000/MT (Ex-Odisha), but to no avail, as demand has evaporated from the market.
“Indian market is currently in a wait-and-watch mode as buyers are playing cautiously while sellers are awaiting the disclosure of benchmark price by Japan,” said a producer source.
On the future outlook, market participants are of mixed view as uncertainty prevails. The situation is observed not to be in favor of Ferro Chrome market while sellers hope the prices to remain stable.
Leave a Reply