Ferro Chrome market remains quiet as buyers and sellers differ on commodity’s price amid uncertain currency fluctuation.
Indian Ferro Chrome producers highlighted that there is no real demand coming in from China as they await the Stainless Steel mills’ tender price for January. Moreover, it is understood that China has sufficient amount of Ferro Chrome after a continuous spell of increasing domestic Ferro Chrome production. Chinese traders are pulling back from taking a position, expecting the major stainless steel firms to lower their purchase price for January.
SteelMint assessed Ferro Chrome prices in the range of 74-75 cents/lb CIF China, while buyers are showing reluctance on the aforementioned price. In line with the Chinese market, offers to Japan and South Korea are at 80 cents/lb and 79 cents/lb respectively. However, demand has evaporated as they believe that they can purchase at even lower prices in the spot market from next month.
With prevailing weakness in Chinese Ferro Chrome market, offers in India has also been affected substantially.
In line with international offers, Indian prices also remained still as deals are heard to have concluded at INR 70,000 (Ex-Jajpur), but bulk quantity deals have not been concluded yet.
Chinese Market Scenario
The HC Ferro Chrome market remained weak but stable, and the overall trend did not fluctuate much from last week. On one hand, stainless steel mills are heard to have production stoppages and production cuts with some mills facing financial pressure. On the other hand, most of the Ferro Chrome producers are reluctant to undersell products again when taking into account production costs and profits. Hence, despite persistently weak demand from major Chinese stainless steel mills, domestic sellers of Ferro Chrome were unwilling to cut their offer price further.
SteelMint learned that most market participants hold a pessimistic outlook towards the future market trend.
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