High Carbon Ferro Chrome Market softened as supply was seen exceeding demand amid continued bearishness.

Indian producers of HC Ferro Chrome have been unable to raise offers in the domestic market owing to persistent over-supply in the market; with manufacturers trying to garner better demand from the overseas market. The mainstream domestic price of HC Ferro Chrome 60% min. is around INR 72,000 /MT Ex-Works basis. However, some buyers also claim to have offers at INR 71,500 for bulk purchases. Another manufacturer based in Central India mentioned that overseas demand has also stalled, prompting unchanged offers in the domestic market. The current price of HC Ferro Chrome Ex-Raigarh stands at INR 72,000 /MT. FACOR Alloys one of India’s largest and established producers and exporters of High Carbon Ferro Chrome is offering HC Ferro Chrome at INR 73,000 /MT.

[su_quote]“The market looks very very weak. There’s a lot of material available and it’s very difficult to sell,” remarked a trader from Odisha.[/su_quote]

Chinese Market

The spot price for Indian origin high carbon Ferro Chrome (58-60% Cr) was assessed at 85 cents/lb CIF China.

This week Chinese Ferro Chrome market remained slow and stable. According to market sources, most buyers are not in any urgent need to purchase, as there is no sign for any rise in demand from China for Ferro Chrome market before the Chinese Spring Festival holidays. Most Stainless steel mills have kept their purchasing prices of high carbon Ferro Chrome unchanged compared with those of December. Meanwhile, due to sluggish demand from stainless steel mills, most participants have a pessimistic view of the Ferro Chrome market even after the holiday. Domestic spot prices of High Carbon Ferro Chrome (50% basis Cr) in China is in the range of Yuan 6,750-6,900/MT (84-86 cents/ lb), on a delivered basis including 17% VAT.

The short-term expectation is for prices to remain under pressure and further downward price movements is still possible, on the back of slow Ferro Chrome demand worldwide.

Exchange Rate: USD 1= INR 62.15