High Carbon (HC) Ferro Chrome prices remain unchanged with market pressurized by low trade levels.
HC Ferro Chrome prices remain at the same level on sparse demand from end-users. Current prices for 60% grade is around INR 69,000-69,500/MT (Ex-works Odisha) and INR 69,000/MT (Ex-Raigarh). Indian producers said that there was a lack of procurement interest from domestic buyers and so most producers have not been able to raise prices even though OMC’s Chrome ore auction received higher bids than last month’s auction. Few market participants are anticipating that Ferro Chrome prices may increase in the days to come, as prices have bottomed out and there is no further scope of any reduction in prices.
Chrome ore prices of Odisha Mining Corporation (OMC) had increased across all grades in the e-auction held on 18 Jun, 2014. Prices for the inside state buyers have increased significantly, however the outside state buyers have witnessed decline in prices. There were 60,000 MT friable Chrome ore and 5,000 MT of concentrate on offer.
Chinese Market
Domestic 50% Cr Chinese HC Ferro Chrome prices held at RMB 6,400-6,600/MT (equivalent to 79-81 cents/ lb). Baosteel and Jiuquan Iron & Steel tabled their July purchase prices early this week, with the former cutting its price by RMB 50/MT to RMB 6,550/MT, and later keeping its price unchanged at RMB 6,550/MT. Shanxi Taigang Stainless Steel had yet to present its purchase price for July.
Most industry participants believed spot prices will remain stable in the near term on support from stable Chrome ore prices and production cuts among Ferro Chrome smelters.
However, some market experts believe that there could be further downside pressure on Chinese domestic spot prices in near term. SteelMint assessed that July is the off-peak demand season for the industry and with summer holidays in Europe, stainless demand will be affected. Also, Ferro Chrome supply is still large as well, so prices may soften in July & August.
SteelMint learnt from market sources that there is an expectation of price rise in days to come as Chrome ore prices have increased, although producers will not raise their offers if demand remains low.
Exchange Rate: USD 1=INR 59.66
Leave a Reply