High Carbon Ferro chrome prices have found support at current levels in the domestic market as demand-supply fundamentals are balanced.
HC Ferro chrome market after diwali break started the week on a bearish note, with prices remaining at the same level. Currently, 60% grade is being offered at around INR 71,500/MT (ex-works Odisha) and INR 71,000/MT (ex-Raigarh). Demand is steady but not good enough for producers to raise their offers.
SteelMint assessed that the overall market sentiment is quite dull and Indian producers for Ferro chrome are quite hesitant for increasing prices looking at the prevailing market condition.
Chinese Market
The spot price of South African-origin charge Chrome (48-52% Cr) was assessed at 78-79.5 cents/lb CIF; down from 79-80 cents/ lb CIF a week ago on the grounds of weak demand and ample supply.
Demand remains weak with several participants saying that they did not receive inquiries from users or did not have any requirement. Supply of Chinese domestic Ferro chrome has also tightened as many producers have cut or halted output amid low domestic prices.
“I don’t see prices falling further. More people will be turning to imports as domestic production declines. Import prices should stabilize in near-term,” said a Ferro chrome producer from India.
However, other market watchers are less confident. Chinese Ferro chrome producers have reduced output but inventory level remains high, assessed SteelMint.
Also, Stainless Steel prices are still falling and mills will continue to pressure Ferro chrome prices, and producers will either keep purchase bids unchanged or cut November prices.
Meanwhile, the spot price of Indian origin HC Ferro chrome (58-60% Cr) is assessed unchanged W-o-W at 82-84 cents/lb CIF China amid a dearth of deals and offers.
Few suppliers were offering material to the Chinese market as supply was tight amid production cut in India, and also because producers preferred to sell in the Indian domestic market and other market such as Japan, South Korea and Europe, which are fetching higher prices, said sources.
Chinese domestic prices of HC Ferro chrome (50% Cr basis) were heard at RMB 6,200-6,400/MT (equivalent to 76-79 cents/lb); unchanged from a week ago.
Japanese Market
The spot Japanese import market for HC Ferro chrome stood at 88-89 cents/lb CIF main port; falling marginally from 88-90 cents/ lb last week. An Indian producer said he would reject bids at 87 cents/lb CIF main Japanese port.
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