Indian high-carbon ferro chrome spot prices fell to a new low, assessed at 62 cents/lb CIF Japan this week, as keen spot sellers emerged amid the seasonal pre-Lunar New Year holiday lull. Market sources highlighted that this price is at its lowest level in the last decade.
There were offers at 64 cents/lb CIF Japan for chrome content at 56%-60%, maximum 4% silicon and maximum 0.03% phosphorous. But these offers were not accepted as the market is devoid of buyers amid the Lunar New Year holiday, triggering competition among Indian spot sellers.
China’s largest stainless steelmaker, Taiyuan Iron and Steel Group, bid at around Yuan 4,800/MT ex-plant for domestic high carbon ferro chrome for January delivery, which equates to 56 cents/lb without local tax.
Some Japanese and Taiwanese steelmakers have suggested producers set term contracts on the basis of the Taiyuan monthly bid price.
Falling Chinese mill bids for domestic ferro chrome combined with producers closing term deals on a China domestic price basis, and thin spot demand amid the seasonal lull, caused prices to plunge.
However, some producers were not in the spot market. “We have sold out our production this month and we are not selling spot. We have been selling to Indian customers at 67 cents/lb FOB equivalent, and I refuse to sell below 66-67 cents/lb CIF Japan,” one Indian producer said.
SteelMint assessed 60% high-carbon ferro chrome at 56-57 cents/lb CIF China, although no spot deals were concluded.
Domestic Ferro Chrome Prices Slump on Continuous Weak demand
Domestic Ferro chrome prices have again gone down this week as there is limited demand and oversupply of the material.
SteelMint assessed ferro chrome 60% at INR 56,000/MT (Ex-Odisha), down by INR 1,000/MT from last week prices.
Ferro chrome market continued to weaken as buyers withdrew further from purchasing. Market sources reported there is sufficient supply in the market but trade levels are very low. Also India’s exports remained stalled, given weak demand from China and Japan
SteelMint learned from sources that market cannot lift much, as demand from end user is pretty weak.
Exchange Rate: USD 1 = INR 67.5
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