SteelMint weekly assessment for grade 60% is around INR 103,000/MT (Ex-Odisha). However, Indian producers are not keen on selling material in the domestic market, due to unfavourable payment terms and the risk associated with it. Moreover, demand has vanished from the domestic market, due to the recent demonetization of currency notes, resulting in a cash crunch in the economy – tying the hands of the potential buyers.
China on the other hand is looking to buy more of Indian Ferro Chrome. The cost of production of the material is quite high in China, which is directing them towards Indian Ferro Chrome. Yesterday, Chinese major Baosteel Stainless had increased its tender price by RMB 1,300/MT due to limited supply of material. As was expected that Ferro Chrome prices could rise further once the Stainless Steelmills in China, released higher purchase tender prices for the month of December. Indian producers revealed to SteelMint that the Chinese are giving buying indications at 122-123 cents/lb. Whereas, Indian producers are holding back from transactions, and are confident that a price of 125 cents/lb for Ferro Chrome (60% Cr) will soon be acceptable to the Chinese buyers.
SteelMint assessed that Indian producers are not amiable to selling at lower prices, as Chrome Ore prices have witnessed a sharp rise, and demand from China is showing no signs of a downturn.
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