Indian High Carbon Ferro Chrome market continued to be in a lull as Chinese Stainless Steel mills are yet to declare their Ferro Chrome Tender Price for Aug’18, and as a consequence, nobody was inquiring for any material.
The domestic High Carbon (HC) Ferro Chrome market witnessed muted demand as end-users withdrew on shaky market sentiment. Current offer prices for HC Ferro Chrome (60% grade) is at INR 72,000-73,000/MT (Ex-works Odisha). Indian producer sources said they were closely monitoring Chinese stainless steel-makers’ August purchase prices, as they are relying heavily on export sales. SteelMint assessed that market sentiment has turned extremely bearish and most market participants expect a further correction.
In the week gone by trade was quiet as buyers retreated to the sidelines, waiting for the tender prices to be released. However, Chinese Stainless Steel mills are testing the spot market to see if suppliers cut prices further before they release their purchase prices for Aug’18.
“There was to be such a fall in prices as the Chinese stainless steelmakers’ difficulties to secure supplies from the domestic market vastly reduced after resumption in production,” said one producer source. Chinese traders were possibly affected by the depreciated Yuan, added another.
Indian producers have offered lumpy HC Ferro Chrome in a wide range of 88-90 cents/lb CIF Japan this week. However, they have met with muted demand as Japan is about to go on holidays and are waiting for direction from the Chinese market before taking a position.
One Indian producer said he had not received any inquiry in the past three weeks and put his price idea at 88-90 cents/lb CIF Japan, on the basis of spot sales prices to China at around 82 cents/lb CIF China. Japanese spot prices are generally higher than those to China, due to higher freight costs and Japanese buyers requiring lower phosphorous content. Other Indian producers offered at 90 cents/lb CIF Japan, for over 200 MT for August loading from Vizag or Kolkata.
Meanwhile, spot prices in South Korea fell sharply W-o-W, sources said. An Indian producer reported a sale at 88 cents/lb CIF Busan for 300-500 MT for August loading.
On the near-term outlook, there is a lot of pressure on Ferro Chrome prices, given persistent lackluster demand.
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