High Carbon (HC) Ferro Chrome prices remained static amid slack activity, as lower offers failed to entice buyers.
Trading activity was scant in the week gone by, as buyers steered clear of any transaction because market awaited clearer direction. Currently, 60% grade is being traded at around INR 68,500/MT Ex-Works Odisha and INR 70,000/MT Ex-Raigarh.
[su_quote]“Demand has been limited and there is no real activity for such a long period,” remarked a producer from Odisha.[/su_quote]
Chinese Market
Domestic spot prices of 50% Cr Chinese HC Ferro Chrome remain unchanged for the sixth straight week at RMB 6,400-6,600/MT (79-81 cents/lb), as the market awaited indications from the August purchase prices of major local stainless steelmakers.
But, spot prices were expected to come under pressure soon after two of the stainless producers tabled cuts to August prices. Baosteel and Jiuquan Iron & Steel set its August prices at RMB 6,500/MT, all down by RMB 50/MT M-o-M. Spot prices had yet to react, with the market still awaiting Shanxi Taigang Stainless Steel’s August price decision, though most observers were expecting the same RMB 50/MT cut from its July price of RMB 6,300/MT. Other than lower bid prices, the Ferro Chrome market was also under pressure from seasonally slower demand, while supply remained high in the country. A source from China also noted that many Chinese producers of Nickel Pig iron had switched to producing Ferro Chrome on high prices and tightening supply – of Nickel ore, since Indonesia introduced a ban on Nickel ore exports starting January.
On the future outlook, SteelMint learned from market participants that the overall market sentiment is quite negative, as prices have remained dormant for a long time. Indian producers for Ferro Chrome are quite hesitant in increasing prices looking at the dull market condition
Exchange Rate: USD 1= INR 60.45
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