Buying activity for High Carbon Ferro Chrome remained limited and prices are cut further. Market sources confirmed of reduced offers with ample supply available in the market.
In the domestic market, HC Ferro Chrome prices scaled down on weak demand from end-users. Current prices for HC Ferro Chrome (60% grade) are hovering at around INR 69,500-70,000/MT (Ex-works Odisha). In Raigarh, prices stand at INR 71,000/MT. Reportedly, there was more than sufficient material available in the market with sparse trading activity.
[su_quote]A trader from Odisha stated, “There is no recovery in the market and no improvement will be witness for the month of March.”[/su_quote]
As the Indian buyers of Ferro Chrome know that INR has appreciated and there is low demand from China. They are taking advantage of the market situation and holding back purchases. This sentiment is also supported by lack of funds available for purchase due to the financial year-end.
Chinese Market
Domestic Chinese spot prices of HC Ferro Chrome (50% basis Cr) were at RMB 6,700-6,900/MT (83-85 cents/lb) W-o-W, inclusive of VAT, as market fundamentals witnessed little change. Domestic prices in China are likely to remain stable in the near term, until the major stainless steel producers in the country Shanxi Taigang Stainless Steel, Jiuquan Iron & Steel and Boatel set their April purchase prices.
The export market remains inactive with no trading activity from China, Japan & Korea. Exports offers from India were not heard because of the on-going Holi holidays.
On the future outlook, most traders reported of a lackluster market with hardly any buying interest in the past one or two months. SteelMint assessed that the whole of March, HC Ferro Chrome market is to remain suppressed and recovery of price may happen in April when the overseas demand improves.
Exchange Rate: USD 1= INR 61.05
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