Ferro chrome prices lost more ground, jolted by poor demand from both domestic & overseas buyers.
In the domestic market, there is recent decline in prices onthe backdrop of bearish sentiment and thin trading. Currently, 60% grade is being traded at around INR 69,500/MT (ex-works Odisha) and INR 70,000/MT (ex-Raigarh). Indian producers said domestic spot inquiries have not increased and there is low demand in the market.
Indian Ferro chrome producers were clamoring to offload stocks, fearing the price correction could intensify.
“Each time we think the price is low enough, it manages to slide below that level,” remarked a Ferro chrome producer.
The short-term expectation is for prices to remain under pressure and further downward price movement is still possible on the background of low Ferro chrome demand worldwide.
Chinese Market
Domestic spot prices of 50% Cr Chinese HCFerro chrome wereRMB 6,200-6,400/MT (equivalent to 76-79 cents/lb);unchanged W-o-W.
Meanwhile, the spot price of Indian-origin HC Ferro chrome (58-60% Cr) was assessed at 82-84 cents/lb CIF China; unchanged W-o-W owing to lack of offers and deals reported. Indian suppliers have limited spot material to offer to the market due to tight supply, sources said.
Some sources said sentiment was more bullish this week compared to previous weeks following production cuts in Inner Mongolia and domestic purchase prices rollover inNovember by major Chinese stainless steelmakers.
“The fear that the market will fall further is no longer there,” said a producer source who noticed more inquiries from the Chinese market this week.
However, others remain wary about market outlook.
“Chinese buyers are not willing to buy imports still. We don’t know how the market will turn out later. There is still uncertainty over stainless steel and nickel price directions in China.”
Japanese Market
The Japanese spot HC Ferro chrome market stood at 87-89 cents/lb CIF Japan; down from 88-89 cents/lb CIF last week and a deal reported at 88 cents/lb CIF Japan.
A deal of 200-300 MT of minimum 60% chrome, 2-4% silicon and 8-9% carbon material were reported to be concluded at 88 cents/lb CIF Japanese main port, loading from India’s Vishakhapatnam port in November.
An Indian producer remarked, “There is strong resistance from producers, although the Japanese steelmakers are seeking the material at 86-87 cents/lb CIF Japan because Chinese spot import market was at this level (taking into consideration additional freight for Japan) as the Japanese mills compete with the Chinese mills.”
Exchange Rate: USD 1= INR 61.4
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