Indian producers of Ferro chrome cut offers to solicit trade as there is selling pressure on them to clear their stocks.
With lower Stainless steel flats prices, Stainless steel plants are not in a hurry to rebuild Ferro chrome stocks, and most Stainless steel plants have reduced their purchasing volume of Ferro chrome as they are wary of further price declines. The mainstream domestic price of HC Ferro chrome 60% min. is around INR 65,000/MT ex-works basis. However, some buyers also claim to have offers at INR 64,000 /MT for purchases from smaller capacity producers. Also, production for HC Ferro chrome has increased with Nav Bharat Ventures Limited shifting its production back to Ferro Chrome in its Odisha unit.
The export market is a more lucrative option for the Ferro chrome producers in India owing to the weakened Rupee. Indian Rupee has hit a 20 month low, and is trading below 64 against the USD. In future trend, prices are expected to remain under pressure, and the possibility of seeing a rebound in prices in the next three to four weeks remains non-existent.
OMC Auction
Odisha Mining Corporation (OMC)is to conduct e-auction for sale of 26,800 MT of Chrome ore on the11th of this month. Out of this 26,000 MT will be Friable ore and 800 MT will be Concentrate. On the other hand, out of the 800 MT of Concentrate ore 300 MT would be of 50-52 grade and 200 MT of 48-50 grade with floor prices INR 12,011 and INR 10,026 respectively.
Chinese Market
The domestic spot price of 50% Cr Chinese HC Ferro chrome was assessed unchanged W-o-W at Yuan 6,400-6,600/MT (equivalent to 78.8-81.3 cents/lb),including 17% VAT and delivery, as the market awaited May purchase prices of major Stainless steelmakers.
Stainless steel producers typically settle their monthly prices at the end of the preceding month or at the beginning of the month, and spot prices usually take their lead from the adjustments. Industry participants reckon the Steelmakers will either roll over or cut their May prices.
Production in parts of south China, like Guizhou, was rising and expected to grow further when power rates in the hydropower-dependent region fall in May with the start of the rainy season.
Japanese Market
SteelMint assessed the spot price of HC Ferro chrome imported into Japan at 86 cents/lb CIF Japan, unchanged from a week ago in thin trade due to the May Golden Week holidays.
Exchange Rate : USD 1 = INR 64.2
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