Prices of ferro chrome edged down this week as the market outlook is bearish on weak stainless steel market.
Ferro chrome prices were down again this week as supply glut and slack demand combined to pull down tradable levels. Sluggish stainless steel market also weakened buying interest for ferro chrome. “It feels like the market is really oversupplied and too many sellers are under destocking pressure. There is so much pressure on prices,” stated a producer from Odisha.
SteelMint assessed ferro chrome offers this week were at INR 59,000-60,000/MT (Ex-Odisha) . Stainless steel manufactures in India are looking at purchasing ferro chrome at nothing above INR 63,000/MT (landed cost). Few ferro chrome producers are also selling material on one week direct credit.
Chinese Ferro Chrome Import Prices Down
Spot prices of high-carbon ferro chrome imports into China fell this week, as overseas sellers aimed to increase sales on the back of Chinese domestic producers curtailing output.
SteelMint assessed the spot price of Indian 58-62% high-carbon ferro chrome at 69-70 cents/lb CIF China, down from 70- 71 cents/lb CIF a week ago. Chinese buyers said import orders were rare, and buy indications from the local stainless mills were at 67-68cents/lb CIF China.
China’s local supplies of ferro chrome were decreasing as domestic producers cut output. “Inquiries are there for imports, as local production has come down,” said the Indian producer. One Chinese ferro chrome plant with less than 5,000 MT/month output in the northeast was likely to close as the current domestic price of RMB 5,900/MT was unsustainable.
Meanwhile, Chinese stainless steelmaker Tsingshan rolled over its November ferro chrome purchase price from October, at RMB 5,800/MT, which is 69 cents/lb excluding the local value-added tax and port handling charges. The mill was seeking 200,000 MT of ferro chrome for November-December delivery, up from 130,000 MT in the last purchase.
Market reaction was mixed among Chinese buyers as the positive is that the market prices are stabilizing. While few, remained cautious, saying they were waiting for November prices of other Chinese stainless mills, such as Baosteel and Taigang.
Japan Ferro Chrome Prices Steady
SteelMint assessed the spot price of high-carbon ferro chrome imports into Japan at 72-73 cents/lb CIF Japan Friday, unchanged W-o-W. An Indian producer put his sell indication at 73 cents/lb CIF Japan.
Exchange Rate: USD 1 = INR 65.5
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