High Carbon Ferro Chrome prices expected to remain at low level as bearish sentiment persists in the market.
Indian HC Ferro Chrome market is witnessing downtrend movement. Currently in Odisha, 60% grade is being traded at around INR 68,500/MT (Ex-Works Odisha). While in Raigarh, it is being offered at INR 70,000/MT (Ex-Raigarh); increased by INR 1,000/MT as there is shortage of Chrome ore.
Meanwhile, Indian producers said domestic spot inquiries have not increased and there is little or no demand in the market. Indian steelmakers’ demand slowed down in the third quarter due to rainy season. Producers said positive momentum to lift prices above current level was lacking, but after the summer, domestic prices are expected to rise.
Chinese Market
Spot prices of India-origin (HC) Ferro Chrome (58-60% Cr) and South Africa-origin charge Chrome (48-52% Cr) at 82-84 cents/lb CIF China and 81-82 cents/lb CIF China, respectively, both flat W-o-W on quiet trading and a lack of deals in the market.
Most sources reported little buying interest from Chinese users, with buying indications mostly at 78-80 cents/lb CIF. But, these were not firm bids.
Two Indian producers stated they received several inquiries from Chinese buyers this week, with one buying interest at 78-79 cents/lb CIF and the other around 80 cents/lb CIF or lower. But, such price levels were not acceptable to the sellers.
Market participants’ views on Ferro Chrome exports were mixed. Some sources said offers for Indian Ferro Chrome at 81 cents/lb CIF were possible as some sellers could accept lower prices owing to depreciation of INR against USD.
However, others mentioned that few Indian suppliers would offer at this level owing to the rising Chrome ore prices in the country and limited spot material in India on tightening supply of Ferro Chrome and Chrome ore.
SteelMint assessed that other markets outside China are also fetching higher prices and sellers need not lower their prices any further. However, export trading is expected to remain quiet at least until the end of August as demand in China is typically lower during the summer, as China is the major buyer for India-origin Ferro Chrome.
Japan’s Spot FeCr Price holds at 90-92 cents/lb
Spot price of HC Ferro Chrome imported into Japan at 90-92 cents/lb CIF, stable since 27 Jun, 2014 amid a lack of trade activity. There were hardly any inquiries as Japanese steel mills typically reduce output in the third quarter, when power rates are higher.
SteelMint assessed that there is little confidence in the Ferro Chrome market as demand has not picked up and there is little possibility of any price rise until demand from China returns.
Exchange Rate: USD 1= INR 60.05
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