High Carbon Ferro Chrome prices remained unchanged this week as demand was flat with market participants suggesting buying interest have receded.

Current price for HC Ferro Chrome is around INR 71,000-71,500 /MT (Ex-Works Odisha) for 60% Grade. The price of HC Ferro Chrome in Raigarh is trading around INR 72,000 – 72,500 /MT.

A purchase manager from an Indian stainless steel mill remarked, “As buyers now we have more leeway to request for lower prices and there’s a lot of material that sellers are trying to offload currently. It’s truly a buyer’s market right now because supply outweighs demand.

Overseas Market

Spot High Carbon Ferro Chrome prices stayed flat at 88 cents/lb CIF Japan amid thin trade, as market participants monitored price negotiations for first quarter 2014 contracts.

An Indian trader said, “Most of the Indian traders want to wait until the Indian rupee and the US dollar rates stabilize.”

Chinese import prices of Ferro Chrome and charge chrome remained flat this week as demand was weak and the outlook doubtful. The spot price for Indian-origin High Carbon Ferro Chrome (58- 60% Cr) was assessed at 84 cents/ lb CIF China, while South African charge chrome (48-52% Cr) assessed at 83-84 cents/lb CIF China, both unchanged from a week earlier.

Chinese buyers continued to avoid buying South African charge chrome given the long lead time and uncertain market. Indian Ferro Chrome is usually delivered at Chinese ports within a month or two, compared with two-three months for South African charge chrome.

Chinese users were mostly not keen on imports this week because, domestic Ferro Chrome prices had been softening, and expectations of buyers and sellers continue to differ significantly. Domestic spot prices of High Carbon Ferro Chrome (50% basis Cr) in China fell to Yuan 6,800-7,000/MT (84-87 cents/lb), from Yuan 6,850-7,000/MT the previous week, on a delivered basis including 17% VAT.

SteelMint assessed that Ferro Chrome prices are unlikely to increase in the near term as Chrome Ore prices have also eased.

Exchange Rate: USD 1= INR 61.90