There were only few inquiries for Indian origin Ferro Chrome in the spot market and most Indian producers are of the view that prices have bottomed out.
Import prices for Indian origin Ferro chrome and South African origin Charge chrome eased this week as market participants pegged lower prices amid low demand.
SteelMint assessed the spot price of Indian-origin high carbon Ferro chrome (58- 60% Cr) at 80-81 cents/lb CIF, down slightly from 81-82 cents/lb CIF China the previous week.
A deal was heard to have been closed by a Chinese stainless steelmaker for Indian origin standard lump material at around 80 cents/lb CIF, a price majority of buyers and sellers saw as tradable.
“80-81 cents/lb CIF is possible, but not lower because domestic prices are better,” said one Indian producer source.
However, some Indian producers who are able to sell in the domestic market — which is said to be fetching prices higher than 80 cents/lb — would not be willing to sell at 80 cents/lb.
Meanwhile, the South African origin Charge chrome (48-52% Cr) spot price was assessed at 78-80 cents/lb CIF China, compared to 79-80 cents/lb CIF China a week ago on slow demand and ample supply.
Demand was poor as Chinese stainless demand and prices have weakened after the New Year holidays in mid-February. However, sources reckoned the imported material could still find support from tight spot supply in India and rising prices of South African chrome ore fines.
Spot supply also remains tight for Chinese domestic Ferro chrome on production cuts in the country, with domestic spot prices managing a slight increase this week after Shanxi Taigang Stainless Steel lifted its March domestic purchase price.
The domestic spot price of 50% Cr Chinese high-carbon Ferro chrome was assessed at Yuan 6,450-6,600/MT (equivalent to 79-81 cents/lb) — including 17% VAT and delivery, up slightly from Yuan 6,400-6,600/MT a week ago.
Japanese Ferro Chrome Prices rise on steady inquiries
SteelMint assessed the spot price of high-carbon Ferro chrome imported to Japan at 85.50-86.50/lb CIF Japan, up from 85-86 cents/lb a week earlier, as a steady flow of inquiries encouraged producers to raise prices.
A deal was reported this week at 86.50 cents/lb CIF main Japanese ports for over 200 MT for April loading in India of 10-50 mm lumps with minimum 60% chrome.
A Japanese trader reported offers from Indian producers at 86 cents/lb CIF Japan, with one having raised its offer 1 cent/lb from the previous offer.
Indian domestic Market unchanged
Ferro chrome market has been presently stable as prices have stagnated over the weeks and demand was as usual low.
“There are very few offers available right now. Producers want to lift prices but the increase so far is not very obvious. The stainless market has been doing very badly,” stated a producer from Odisha.
Currently, 60% grade is being traded at around INR 68,000/MT (ex-works Odisha) and INR 68,000/MT (ex-Raigarh). Ferro chrome prices in the domestic market were assessed unchanged W-o-W as buyer’s absence constrained trading activity. Buyers were happy to stay on the sidelines given the unclear market condition.
SteelMint assessed that the overall market sentiment is quite negative as prices have remained dormant for a long time. Looking at the market condition producers have also kept their offers at a low level.
Exchange Rate : USD 1 = INR 62
Leave a Reply