Indian producers of Ferro Chrome have raised offers in the domestic market with greater price parity in exports
Domestic offer price for High Carbon Ferro Chrome witnessed a substantial uptick from last week. The mainstream price of HC Ferro Chrome 60% min. is ranging from Rs. 69,000 – 70,000 /MT (Ex-Works Odisha). A trader source remarket that there is much greater realizations in exports, hence producers of HC Ferro Chrome have firmed their offers, as export sales at Rs. 72,000/MT is easily achievable in the market. The price of HC Ferro Chrome in Raigarh stands at Rs. 71,000 /MT. FACOR (Ferro Alloys Corporation Limited) is offering HC Ferro Chrome (60% Grade) at Rs. 72,000 (Ex-Plant).
Chinese Market
Export offers to China for Indian-origin HC Ferro Chrome (58-60% chrome) moved higher to around 84.5-85 cents/lb CIF China main-ports. A producer source revealed, “Consumers are seeking lower prices at around 83 cents/lb and hence it's difficult to close deals due to the gap between buyers and sellers.” Some traders reported more inquiries this week as Indian HC Ferro Chrome has slipped below Chinese domestic spot prices — which were at Yuan 6,900-7,000/MT (equivalent to 85-86 cents/lb) — making imports more attractive.
While some sellers were willing to lower offers, some were not as they believed Ferro Chrome prices could rebound soon given the recent rise in Chinese Stainless Steel prices.
SteelMint assessed that Chinese buyers remained cautious over import purchases as they believed the Indian Rupee and South African Rand could depreciate further, meaning prices would be even lower.
Import of High Carbon Ferro Chrome into China has risen 10.5% year-on-year to 921,105 MT in January-July this year, according to data from Chinese customs.
Japanese Market
Market sources indicated that there has been a steady demand from Japan, and that Japan was actively importing HC Ferro Chrome this week, with indications of closing deals for around 2,400 MT of HC Ferro Chrome. The offer price for HC Ferro Chrome from India suppliers remained unchanged at 91-93 cents/lb CIF Japan. An Indian producer revealed that they had offered lumpy material with minimum 60% Chrome, maximum 8.5% Carbon, 3-4% Silicon and maximum 0.04% Phosphorous content for September loading at 92 cents/lb CIF Japan, but received a counter-bid below 90 cents/lb and the deal has not been concluded yet. SteelMint assessed that stable automotive production was fuelling demand from Special Steelmakers in Japan. A market participant also highlighted that there was greater demand for low Phosphorus material.
On the future outlook, the increase in demand could be balanced out by the increase in production and prices should remain stable in the near-term.
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