High Carbon Ferro Chrome market for months has remained largely quiet as demand continues to be very low in the market.
Indian HC Ferro Chrome market condition remains stable with trading activity being quiet overall. Current price for HC Ferro Chrome (60% Grade) is settled at around INR 69, 5000/MT (Ex-Works Odisha) and INR 70,000/MT (Ex-Raigarh); both unchanged W-o-W.
[su_quote]“Trading activity is scant and so prices have remained unaltered. The market is dormant for months,” stated an Odisha based trader.[/su_quote]
Chinese Market
Spot prices of South Africa origin charge chrome (48-52% Cr) were assessed at 81-82 cents/lb CIF China; down from 82-83 cents/lb CIF a week ago, as offers dropped on muted demand in China. No deals could be confirmed this week but sources said offers and possibly tradable prices had fallen to the above range. The spot price of India-origin HC Ferro Chrome (58-60% Cr) unchanged at 83-84 cents/lb CIF China W-o-W owing to lack of price indications in the market.
Trading of imported charge chrome and Ferro Chrome in China remained slow owing to factors such as weak demand from stainless mills, falling domestic prices and rising supply.
SteelMint learnt from sources that demand for both imported & domestic Ferro Chrome in China has slowed further recently as many stainless mills have started using more stainless Scrap in their production — following an increase in domestic nickel Pig iron prices.
[su_quote]Several traders also said, they did not receive inquiries from Chinese users for imported material this week. “Chinese buying indications for imports is at 80 cents/lb CIF or lower, but these were not firm bids and no suppliers are willing to drop their prices to this level,” said a trader from India. He further highlighted, “The more Chinese customers can hold out, the more the (buy-sell) gaps will narrow.”[/su_quote]
Domestic spot prices of 50% Cr Chinese HC Ferro Chrome had eased to RMB 6,500-6,700/MT (80-82 cents/lb) delivered with 17% value-added tax; down from RMB 6,600-6,700/MT a week earlier.
Japanese Market
Japanese spot HC Ferro Chrome import prices were steady at 88-89 cents/lb CIF Japan Friday, stable since March, 14. Japanese traders sent inquiries to Indian. Oman-based producers are also checking for spot cargo availability. Deals, however, did not close this week, Japanese and Indian sources said.
Market experts had said, previously they were expecting some spot demand from mills substituting stainless Scrap feedstock with primary Ferro Chrome material.
An Indian producer source said, he was not offering and pegged the current spot price at 89-90 cents/lb CIF main port Japan.
Separately, a deal for several container loads of 65% Chrome, maximum 1.5% silicon, and 8% carbon material was reported done at 118 cents/lb CIF Japan this week.
Stainless steel, specialty steelmakers view such chemistry as having a favorable Chrome to Silicon and Chrome to Carbon ration and willing to pay a premium over more standard grade with 2-4% Silicon and 8-9% Carbon.
SteelMint assessed the short-term expectation is prices to remain under pressure, although further downward price movements is not possible. Market participants reported, the market will remain weak as there is low Ferro Chrome demand worldwide.
Exchange Rate: USD 1= INR 58.52
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