The High Carbon Ferro Chrome market started to decline as buyers retreat. Market participants reported of bearish expectations from end-users.
Domestic High Carbon Ferro Chrome market condition remains dull on weak demand. Current price for HC Ferro Chrome (60% Grade) is settled in the range of INR 71,000- 71,500/MT (Ex-Works Odisha) and INR 71,500-72,000/MT (Ex-Raigarh). Indian producers have not raised their prices for HC Ferro Chrome although OMC has increased their prices for Chrome Ore. This is because Indian producers do not want to lose out on their sale.
[su_quote]“Now the Ferro Chrome market is staying quite flat and showing no signs of further improvement, with low demand from domestic as well as overseas market,” remarked an Odisha based trader.[/su_quote]
Chinese Market
Spot prices of India-origin high carbon Ferro Chrome (58-60% Cr) and
South African charge chrome (48-52% Cr) were assessed at 84-86 cents/lb CIF China and 84-85 cents/lb CIF China respectively , both unchanged W-o-W, as buying interest remained thin. The domestic spot price of High Carbon Ferro Chrome (50% Cr) in China was at RMB 6,750-6,900/MT (84-86 cents/lb).
Interest was thin as some Chinese buyers wanted to wait for major stainless mills to set their March purchase prices, while others were not keen to buy as they thought prices could fall further.
[su_quote]However, Indian Ferro Chrome producers said they see little room for import prices to fall on support from production costs. “Selling at 85 cents/lb only allows us to marginally cover our costs. We are not thinking of profits here,” said an official with an Indian producer, noting higher Chrome ore prices in India.[/su_quote]
Japanese Market
The spot price of high-carbon Ferro Chrome (60-65% Cr) imported into Japan was assessed at 88-90cents/lb CIF Japan Friday, unchanged for the second week in a row amid lackluster trading.
Indian producers said they were unlikely to sell below last done levels of 88-90 cents/lb CIF.
On the future outlook, SteelMint learned from Market participants that the overall market sentiment is quite negative and Indian producers for Ferro Chrome are quite hesitant in increasing offer prices looking at the prevailing market condition. However few market participants are hoping that if there is a re-emergence of buying, then prices are likely to go up.
Exchange Rate: USD 1= INR 61.94
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