High Carbon Ferro Chrome offers were raised this week amid renewed buying indication from end-users.
Currently, 60% grade is being offered at around INR 69,000/MT (ex-works Odisha) and INR 70,000/MT (ex-Raigarh).
Market sources reported that some Stainless Steel mills in India, which are running below inventory level, have started buying their material as per requirement in this week. Prices are expected to rise to INR 70,000/MT in a week’s time, as there is restricted supply in the market owing to shortage of Chrome ore. Moreover, Tata Steel with an installed capacity of 110,000 MT pa has shutdown their both plants owing to unavailability of Chrome ore. Taking advantage of the situation; Ferro Chrome producers, which do not have their own Chromite mines, are likely to hike their offers in the domestic market, as they have been operating at a loss for the past couple of months.
[su_quote]An Indian producer said that his company was also studying the possibility of switching to Manganese alloys, after curtailing Ferro Chrome output two months ago.[/su_quote]
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.
No offers or deals could be confirmed this week. Chinese buyers either did not ask for offers as they didn’t have any import requirements, or their suppliers had not provided any.
[su_quote]“No one is interested in imports now,” said an Indian producer. Chinese buyers would only be interested in buying at 77-78 cents/lb CIF, but we are unlikely to drop to this level, he said.[/su_quote]
Most Chinese buyers remain pessimistic about the near-term outlook and expected domestic prices to soften further, said sources.
Domestic spot prices of 50% Cr Chinese HC Ferro Chrome have corrected to RMB 6,400-6,500/MT (equivalent to 79-80 cents/lb), delivered with 17% VAT, after holding constant at RMB 6,400-6,600/MT for the past six consecutive weeks. Price correction was in response to lower August purchase prices from major local stainless producers, and to large supply and weak demand.
Other Markets
The spot price of HC Ferro Chrome imported to Japan is in the range of 87-89 cents/lb CIF; down owing to thin trade. There has been hardly any deal, offer or bid as reported by Japanese buyers and Indian producers. Japanese trade was thin owing to some stainless steelmakers closing for summer holidays.
Korea has bought 3,000 MT of HC Ferro Chrome at 86-87 cents/lb CIF Busan. The Japanese import prices, on a main port basis, are typically 1 cent/lb higher than South Korea’s owing to higher freight from India.
SteelMint assessed HC Ferro Chrome prices were down amid limited activity. There were very few inquiries from buyers and fewer deals were concluded to be confirmed.
Exchange Rate: USD 1= INR 61
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