Ferro Chrome prices marched northwards owing to a resurgence in demand of the commodity from China coupled with elevated chrome ore prices.
SteelMint assessed the Ferro Chrome prices at around INR 74,000/MT (Ex-Odisha). The producers claimed to have raised their domestic offers on account of significant hike in export offers. Although, few producers were also heard to be offering at INR 76,000/MT and higher, but only small quantity deals were confirmed from the buyer side at that level. Indian producers are however confident of prices moving up to INR 80,000/MT in the coming days.
A producer source mentioned that they are expecting the prices to move further upwards and hence sellers are holding on to their inventory for higher prices.
According to our correspondent in China, Stainless-steel prices rebounded in China and the local Ferro Chrome producers are demanding higher prices and that the stainless steel mills are low on inventory and might have to accept higher offers.
Moreover, the Ferro Chrome market is witnessing tightening supply situation as its production has been reduced after environmental inspection, and thus is lending further support to its prices.
Export offers are assessed at 85 cents/lb CIF China, 90 cents/lb CIF Korea and 91 cents/lb CIF Japan. Inquiries are heard to have picked up from Korea while Japan is still on a wait-and-watch mode as Japanese buyers expect the European benchmark price to come down.
The Chrome Ore prices, on the other hand, also aided rising Ferro Chrome prices as South African sellers raised their offers due to high power tariff during the winter season.
On the future outlook, the market participants expect a further rise in Ferro Chrome prices due to strong demand coupled with low supply and pricey Chrome Ore.
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