The sharp climb in ferro chrome prices continued and sentiment remained bullish amid a scarcity of supply.
SteelMint weekly assessment for grade 60% is around INR 76,000/MT (Ex-Odisha). However, few producers were also heard to be quoting around INR 78,000/MT. Demand from the domestic market is subdued higher offers are not finding acceptance any more. Though there has been no notable rise in demand for Ferro Chrome in India, scarcity of material is the reason for price surge in the market. Also, two new plants have started producing Ferro Chrome in India, with a combined capacity to produce 6,000-8,000 MT per month. These plants are offering material at discounted rates, according to market sources.
Indian Ferro Chrome Export Price to China Up Substantially
Prices for High Carbon Ferro Chrome to China rises to 86 cents/lb CIF China, following a dramatic increase by 5 cents/lb after the National Day holidays. Indian producers believe that prices for Ferro Chrome in China could rise further as spot material is limited at chinese ports.
European and American buyers of Indian Ferro Chrome are resisting any price rise due to very low demand in the market.
The price idea between Japanese buyers and Indian sellers continued to remain. Indian producers are offering HC 60% Ferro Chrome at 90 cents/lb CIF Japan, but Japanese buyers are not willing to pay over 86 cents/lb.
SteelMint learnt from market sources that it is only the Chinese demand for Indian ferro chrome that has lent support to a sharp rise in prices.
|
Inida Export Ferro Chrome during Jan to Sep’16 (in MT) |
||||||||||
| Importing Country |
Jan’16 |
Feb’16 |
Mar’16 |
Apr’16 |
May’16 |
Jun’16 |
Jul’16 |
Aug’16 |
Sep’16 |
Grand Total |
| South Korea |
8,620 |
7,435 |
8,080 |
7,874 |
10,228 |
9,080 |
13,942 |
20,901 |
20,402 |
127,465 |
| China |
7,483 |
8,318 |
11,177 |
4,133 |
8,907 |
15,493 |
16,124 |
7,318 |
9,488 |
95,760 |
| Taiwan |
8,244 |
8,691 |
6,520 |
5,799 |
6,743 |
15,276 |
6,644 |
9,920 |
11,295 |
89,051 |
| Japan |
1,586 |
3,214 |
1,622 |
3,669 |
5,418 |
2,590 |
3,276 |
3,185 |
4,768 |
32,513 |
| Netherlands |
2,666 |
2,444 |
4,066 |
2,428 |
3,508 |
2,168 |
4,460 |
2,102 |
– |
25,945 |
| Italy |
2,073 |
2,304 |
713 |
1,870 |
2,082 |
1,341 |
840 |
519 |
1,950 |
14,211 |
| Brazil |
723 |
789 |
902 |
446 |
2,121 |
324 |
1,561 |
1,603 |
538 |
10,610 |
| Usa |
100 |
651 |
1,221 |
978 |
359 |
1,029 |
2,354 |
872 |
1,008 |
9,445 |
| Mexico |
405 |
– |
513 |
– |
243 |
1,053 |
432 |
675 |
729 |
4,724 |
| Others |
2,058 |
1,763 |
2,678 |
1,916 |
4,113 |
1,837 |
2,366 |
2,035 |
2,221 |
23,022 |
| Grand Total |
33,958 |
35,608 |
37,493 |
29,112 |
43,723 |
50,191 |
51,999 |
49,131 |
52,398 |
432,746 |
Source: Customs
Ferro chrome exports from India stood at 52,398 MT in Sep’16 which increased by a meagre 7% M-o-M. In Aug’16 Indian ferro chrome exports stood at 49,131 MT.
In Sep’16 only a slight increase in ferro chrome exports was witnessed for China, Taiwan, Japan and Italy.
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