Indian Ferro Chrome witnessed a substantial increase in its prices as demand from China is back.
“Chinese inquiries are gathering steam,” reported a Ferro Chrome producer from India. Chinese demand was subdued on account of New Year festivities in January and maintenance breaks that were taken in the last two months. But, things are looking up for Ferro Chrome producers in India as Chinese demand is gaining momentum and Stainless Steel production is expected to rise. Export offers to China for Indian-origin HC Ferro Chrome (58-60% chrome) moved higher to around 106 cents/lb CNF China. However, the offers for Japan and South Korea remained unchanged at 109-111 cents/lb and 108-110 cents/lb, as there is no spot demand coming in from Japan and Korea.
There has been an increase of INR 1500/MT in Indian Ferro Chrome Prices, and is being currently offered at around INR 92500/MT (Ex-Odisha). Confidence appeared to be returning to the domestic Ferro Chrome market. A trader source remarked, “Producers are trying to offer at higher prices now in order to take advantage of the improved market sentiment.”
On the future trend, most market participants believe there is a possibility of a further price-rise, due to better demand expected in the coming days.
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