Indian producers of Ferro Chrome have raised offers in the domestic market owing to the weakened Rupee (Indian Rupee fell to an all-time low of 68.75/USD); making exports a more lucrative option for the manufacturers
Domestic offer price for High Carbon Ferro Chrome has witnessed a further uptick from last week. The mainstream price of HC Ferro Chrome 60% min. is ranging from Rs. 66,000 – 67,000 /MT (Ex-Works Odisha). A producer source remarked, “The knowledge of the fast depreciating Rupee has helped push up prices in the domestic market.” Some sources also pointed out that they are buying more now to stock up as prices are expected to increase further. The price of HC Ferro Chrome in Raigarh stands at Rs. 68,000 /MT.
Chinese Market
Export offers to China for Indian-origin High Carbon Ferro Chrome (58-60% Cr, 6-8% C) inched lower to 83.5-85 cents/lb CFR China main ports, down from 84-85 cents/lb CFR a week ago, as some Indian suppliers aided by the weaker rupee reduced offers to garner greater buying interest. However some sellers are unwilling to drop prices because they are bullish about the market as Chinese Stainless Steel prices had surged recently.
No deals could be confirmed for South African Charge Chrome (48-52% Cr) but offers were heard at 84-84.5 cents/lb CIF China this week. South African Charge Chrome generally enjoys a premium of around 10 Cents/Lb over the Indian Ferro Chrome for having 0.01-0.02% lower Phosphorus content.
It is to be reported that China's imports of HC Ferro Chrome has risen by 4.7% month-on-month and 1.5% year-on-year in July to 110,341 MT, because of an increase in imports from India, according to data from the Chinese customs. Imports from South Africa and Kazakhstan fell but those from India surged nearly four-fold SteelMint learned from sources that there is a lot of interest from Chinese buyers, as prices have not been this low since 2009.
Other Overseas Markets
The offer price of HC Ferro Chrome exported to Japan from India stands at 91-93 cents/lb CIF Japan, unchanged from the previous week, because of an absence of deals, offers and bids. A deal was reported to be concluded at around 93 cents/lb CIF Japan for 3-10 mm sized Ferro Chrome with minimum 60% Chrome and 0.02-0.04% Phosphorous content for quantity of less than 100 MT.
South Korea's Korea Resources Corp has issued a buy tender for 1,500 MT of High Carbon Ferro Chrome and 500 MT of Low Carbon Ferro Chrome. The material is for delivery to Gunsan warehouse.
On the future trend there is a lingering uncertainty in the market, as there remains a gap between the price at which the sellers and buyers want to trade.
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