The sharp climb in Ferro chrome prices continued and sentiment remained bullish amid a scarcity of supply.
The current offers in India for HC Ferro Chrome (60%) is around INR 100,000/MT Ex-Jajpur. But, the demand situation is largely hampered by the demonetization of the currency. Although, domestic prices for Ferro Chrome are expected to go up further in line with export prices and rising domestic Chrome Ore prices.
Sources revealed that most ferro chrome producers are booked with orders and they do not have material to offer in the open market. “Scarcity of material is the reason for price surge in the market”, said a producer based in Odisha.
SteelMint assessed that OMC is likely to increase the base price by a susbstantial margin for the next round of chrome ore e-auction which will be held on 26 Nov’16. Market sources reckoned that the base price for Chrome Ore (48-50%) could be close to INR 20,000/MT in the upcoming OMC e-auction.
Indian Ferro Chrome Export Prices Scales New Heights
Spot prices of India-origin high carbon ferro chrome (58-60% Cr) is around 120 cents/lb CIF China for December delivery.
Large steel mills in China are expected to increase purchase prices for the next month by RMB 1000 for high carbon ferro chrome. Affected by the increase in purchase price by Stainless Steel mills, prices for Ferro Chrome and Chrome Ore in China have gone up accordingly. Due to insufficient stocks and relatively strong demand in the Chinese market, prices for South African Chrome Ore Concentrate 40-42% moved up to USD 350-360/MT FOB South Africa. South Africa accounts to about 65% of the global Chrome Ore trade.
The spot price of high-carbon ferro chrome imported into Korea is at 110 cents/lb CIF Korea and Japanese buyers are yet to accept higher offers.
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