Ferro Chrome offers corrected upwards as the downstream High Carbon Ferro Chrome market witnessed tighter supply in China and steady increase in offers for South Africa Chrome Ore.
Apart from Ferro Chrome being firm, there are signs of prices rising further and there are more participants in the industry who hold a bullish outlook.
“Scarcity of material is the reason for price surge in the market,” said a producer source referring to the Chinese market where production of the commodity has been cut significantly due to environmental concerns.
SteelMint learned that the demand for the commodity in China has been very strong and buyers have been paying higher than the tender price set by major stainless-steel producers.
In line with the same, Japanese and Korean buyers are also accepting higher offers. The export prices are assessed at 91 cents/lb CIF China, 94 cents/lb CIF Korea and 96 cents/lb CIF Japan.
Moreover, higher Ferro Chrome prices have also supported the South African UG2 chrome ore prices which are assessed at USD 210-215 CIF China. The chrome ore market at Chinese ports maintained a strong momentum on the back of limited supply and rising price of spot Ferro Chrome, leading to a firmer position of chrome ores at ports.
Demand for the commodity in the domestic market is moderate and most of the producers are already booked for July shipment.
SteelMint assessed the domestic prices at INR 80,000/MT (Ex-Odisha), while fewer deals are heard to have concluded at even higher levels.
On the future outlook, Indian producers are increasingly optimistic towards a bullish atmosphere in the market.
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