Export offers for Indian origin Ferro chrome eased this week as market participants pegged lower prices amid low demand and cut in freight cost.
Chinese market
The spot price of Indian-origin HC Ferro chrome (58-60% Cr) was assessed at 80/lb, CIF China amid a lack of demand. No deals could be confirmed this week. Indian producers may be amenable to selling at lower prices as Rupee has also depreciated against US dollar.
Japanese Market
SteelMint assessed the spot price of Indian-origin high carbon Ferro chrome (58- 60% Cr) at 84 cents/lb CIF Japan, down slightly from 85 cents/lb CIF Japan last week. The Japanese buyers were unwilling to buy at anything above the price that was being offered to China (plus the additional freight cost). No deals were heard to be concluded this week as there is a big gap between the price ideas of buyers and sellers.
Indian Ferro Chrome Market lackluster
There were only few inquiries for Ferro chrome in the domestic market and most Indian producers are of the view that prices have bottomed out. Currently, 60% grade is being offered at around INR 64,500/MT (ex-works, Odisha) and INR 66,000 (ex-Raigarh). Producer sources said that they were aware of downfall in the Stainless Steel market, but with no inquiries it was difficult to see where the tradable value was.
“Steel demand is so bad and the market is already on a downtrend with no visible recovery as buying continues to be weak,” stated a Odisha based producer.
SteelMint assessed the short-term expectation is of prices to remain under pressure and any uptick seems unlikely in this month. Market participants reported market will remain weak with low Ferro chrome demand worldwide.
Exchange Rate : USD 1 = INR 63.4
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