As the quieter summer months are around, the Indian HC Ferro Chrome producers expressed concern as demand for Stainless Steel in India does not look promising and prices for its raw material, Ferro Chrome is expected to follow a similar trend. The mainstream price for HC Ferro Chrome 60% min. is ranging between Rs. 66,000 – 66,500 /MT Ex-Works Basis.
Export offers for HC Ferro Chrome (Grade 60%) currently stand at 0.94 USD/Lb CIF Korea, and is ranging between 0.93 – 0.96 USD/Lb CIF Japan, Portugal. A Central European source believes that prices for Ferro Chrome will see further downticks in the near future as he expects some stock-holders to rush to sell the material. SteelMint assessed that there is has been considerable increase in global production of Ferro Chrome, and with so much supply the market is expected to be in surplus, at least for a while till the demand catches up. World Steel Association expects South African FeCr production capacity to increase by 2.8% this year; China’s is expected to increase 13.7%. The extent to which the market can absorb this new production depends largely on the health of the Stainless Steel industry.
Meanwhile, China is importing record amounts of Chrome Ore, for its own rapidly expanding Ferro Chrome smelting industry. In April, China imported nearly 1.3 million tons of Chrome Ore, up by 35% compared with previous month.
China’s Baosteel also increased its purchase price for HC Ferro Chrome in June by 50 Yuan – equivalent to $ 8.16/MT. Whereas, JISCO cut its purchase price by 200 Yuan ($ 32.64) compared with April – as the Company did not purchase in May.
Due to slow demand from consumers traders are very cautious to import HC Ferro Chrome from India, even though the price of Chrome Ore is rising.
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