High Carbon Ferro Chrome prices rose this week, after recent lows for quite some time, as buy side demand remained steady.
HC Ferro Chrome prices soared this week as sources report of Chrome ore shortage in the market. Demand in the market remains stable. Currently, 60% grade is being offered at around INR 70,000/MT (Ex-Works Odisha) and INR 71,000 (Ex-Raigarh).
On the future outlook, Steel Mint learnt from market sources that there is limited downside expected in terms of prices for Ferro Chrome as demand for the material is constant along with shortage of supply.
Chinese Market
The spot prices of India-origin high carbon Ferro Chrome (58-60% Cr) is at 82-84 cents/lb CIF China and South Africa-origin charge chrome (48-52% Cr) at 81-82 cents/lb CIF China , both flat W-o-W as buyers and sellers continued their impasse.
No deals could be confirmed. Offers for Indian Ferro Chrome remained scant with only Chinese buyers reporting of offers at 82-83 cents/lb CIF.
Buy indications — not firm bids, though — were heard at 79-81 cents/lb CIF. However, most Indian suppliers were not interested in selling at this range due to high production costs, said sources. Indian producers are also less inclined to export to China now as prices in the Indian domestic market are recovering, and Sellers will go to China only after they have exhausted their other options or if prices in China improve.
Sentiment in the Chinese domestic market remained weak. Domestic spot prices of 50% Cr Chinese high-carbon Ferro Chrome had eased to RMB 6,250-6,400/ MT (equivalent to 77-79 cents/lb), delivered with 17% VAT, down from RMB 6,300-6,400/MT a week ago.
Japanese Market
Japanese spot price for Indian origin high-carbon Ferro Chrome is at 89-91 cents/lb CIF Japan, up from 87-89 cents/lb last week and rising for second consecutive week due to a decline in spot supply.
An Indian producer reported a sale at 90-91 cents/lb CIF Japan for 500 MT of lumpy material sized 10-50 mm, with 60% chrome, 2-4% silicon and 8-9% carbon content for October loading from Vishakhapatnam.
Deals at 89 cents/lb CIF Japan may be possible as some Indian suppliers are suffering from low Chinese import prices, but the market was no longer at 88 cents/lb, reported market sources.
Exchange Rate: USD 1= INR 61.13
Leave a Reply