High Carbon Ferro Chrome offers remain stable, although market participants anticipate prices to rise soon.
Ferro Chrome market has been calm as buying activity remain dull. Currently, 60% grade is being offered at around INR 69,000/MT (ex-works Odisha). In Raigarh, prices have increased by INR 1,000/MT and currently being offered at INR 71,000/MT. Market sources reported that prices should increase soon, as Chrome ore offers are elevating.
Japanese Market
Japan’s spot import HC Ferro Chrome price at 89-90 cents/lb CIF Japan; unchanged since start of August amid mixed market fundamentals.
There were no spot bids, offers or deals for minimum 60% Chrome material – reported by Japanese buyers or Indian producers.
Tata Steel suspending output of 50,000 MT pa Bamnipal plant in the first week of August, which may trigger spot demand, some sources said. The plant supplies at least three Japanese steelmakers on a term basis.
On the other hand, slow demand in China, India’s largest export destination, continued to weigh on prices, an Indian producer source said.
Slow demand triggered some Indian producers to sell aggressively for small lots.
A South Korean steelmaker bought 1,200 MT at 88-89 cents/lb CIF Busan for September delivery. Because of a longer distance traveled from India to Japan, freight cost to Japan is 1 cent/lb higher than the CIF Busan level.
Chinese Market
The spot prices of Indian origin HC Ferro Chrome (58-60% Cr) at 82-84 cents/lb CIF China and South African origin charge Chrome (48-52% Cr) at 81-82 cents/lb CIF China; both flat W-o-W amid a wide bid/offer spread.
No deals could be confirmed, with only a few offers heard this week.
[su_quote]“There is too big gap between buyers’ & sellers’ ideas,” remarked a producer source from India.[/su_quote]
SteelMint assessed that Ferro Chrome producers were unwilling to correct offers on the background of high production costs from winter power tariffs in South Africa and tight supply as well as high prices of Chrome ore in India. Sellers also had limited spot material, given production reduces in both countries.
Exchange Rate: USD 1= INR 60.46
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