Low Ferro Chrome prices in China amid ample domestic supply and falling Stainless Steel prices forced the Indian producers to reduce their offers to generate trading possibilities.
A producer source mentioned that China has sufficient amount of Ferro Chrome after a continuous spell of increasing domestic Ferro Chrome production. Moreover, the Ferro Chrome market is persistently under pressure from falling Stainless Steel and Chrome Ore prices in China.
South African 40-42% chrome ore was heard trading this week at USD 180-185/MT CIF China.
Chinese traders are pulling back from taking a position, expecting the major stainless-steel firms to sharply lower their purchase price for August. As a result, there is a lot of uncertainty on what price should they buy at now.
Moreover, further depreciation of Yuan vis-à-vis the USD has discouraged buyers from importing Ferro Chrome from India.
Indian Ferro Chrome producers highlighted that there is no real demand coming in from China as the commodity is available in their domestic market at low prices.
Indian offers are assessed at 85 cents/lb CNF China but deals concluded are very rare. Similarly, Ferro Chrome prices in Japan and South Korea also deteriorated to 92 cents/lb and 91 cents/lb respectively.
Ferro Chrome market in India has also taken a toll as most of the producers were unable to conclude deals in China and are pushing the same in the domestic market. The offers are lowered to INR 77,000/MT (Ex-Odisha), but to no avail, as demand has evaporated from the market. Few buyer sources also reported of offers at INR 75,000/MT, but are confident of buying at around INR 72,000/MT in a week’s time.
Moving ahead, Ferro Chrome prices may move down further as market conditions have turned bearish and both buyer and seller sources expect a further fall in prices.
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